Sal Collaziano
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Filed under: Economy, Hybrids/Alternative, Government/Legal, Green, Chevrolet, GM, Earnings/Financials
Aside from the bridge loans supplied to GM by the federal government, GM had applied for $10.3 billion from the Energy Department. Of that amount, $2.6 billion was meant to be devoted to building the Chevy Volt and two derivatives of it, as well as a third hybrid model. May is when the Energy Department will begin approving those loan requests.
But because the company itself hasn't passed the financial viability test in order to simply survive, the administration has put GM's $10.3 billion request on hold. The government deadline for GM to prove financial viability is June 1, and since it will probably take all of that time, GM can't look for any other cash assistance to continue product development until that matter is resolved.
GM says that the government decision won't stop the Volt from going on sale in November 2010. Outside analysts suspect that GM plans to pay for the Volt with money from other programs.
[Source: Automotive News - Sub. Req.]U.S. Department of Energy funding for Chevy Volt on hold originally appeared on Autoblog on Mon, 13 Apr 2009 07:59:00 EST. Please see our terms for use of feeds.
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Aside from the bridge loans supplied to GM by the federal government, GM had applied for $10.3 billion from the Energy Department. Of that amount, $2.6 billion was meant to be devoted to building the Chevy Volt and two derivatives of it, as well as a third hybrid model. May is when the Energy Department will begin approving those loan requests.
But because the company itself hasn't passed the financial viability test in order to simply survive, the administration has put GM's $10.3 billion request on hold. The government deadline for GM to prove financial viability is June 1, and since it will probably take all of that time, GM can't look for any other cash assistance to continue product development until that matter is resolved.
GM says that the government decision won't stop the Volt from going on sale in November 2010. Outside analysts suspect that GM plans to pay for the Volt with money from other programs.
[Source: Automotive News - Sub. Req.]U.S. Department of Energy funding for Chevy Volt on hold originally appeared on Autoblog on Mon, 13 Apr 2009 07:59:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments
Read More...