Chrysler Pulls Federal Loan Request – Car Pro News

Chrysler said it is withdrawing its application for a loan from the U.S. Department of Energy that it had been seeking since 2008. It had applied for a loan under a program designed to encourage development of hybrids and electric vehicles.
Ford received $5.9 billion and Nissan received $1.4 billion in loans from the program in 2009.
General Motors, in contrast, withdrew its $14 billion application in January 2011. Russian steelmaker Severstal’s $730 million loan, which received conditional approval last year, was rejected last month.
Chrysler and Fiat CEO Sergio Marchionne has expressed increasing frustration about the lengthy process, saying at the Detroit auto show last month, “If the number ends up being so small that it doesn’t reflect what our expectations were in terms of the funding, and if it doesn’t match what other carmakers got, then I ask myself the question, ‘Why am I bothering?’ “
Chrysler had originally asked for more than $7 billion from the $25 billion Advanced Technology Vehicle Manufacturing program. The program was part of a larger energy bill and was funded by Congress in 2008. Later, Chrysler reduced its request to $3.5 billion.
The company now will fund such R&D on its own. In a statement, Chrysler said, “The company remains confident in its strategy to bring competitive, fuel-efficient vehicles and technologies to market on schedule. This decision will not impact Chrysler’s ability to achieve its previously announced business plan targets.”

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