AppId is over the quota
AppId is over the quota
By Danny King September 21, 2011
Republicans in Congress are looking to slash federal funding for the federal Advanced Technology Vehicles Manufacturing (ATVM) loan program by as much as $1.5 billion -- a move that could set back attempts to cut oil consumption by the U.S. passenger-vehicle fleet. The ATVM loan program cut, if approved, could particularly effect Chrysler's efforts to catch up to its U.S. competitors on the vehicle-electrification front. Many members of Congress are saying that some funds earmarked for the U.S. Department of Energy's (DOE) Advanced Technology Vehicles Manufacturing (ATVM) loan program should be diverted to the Federal Emergency Management Agency (FEMA) to help victims from Hurricane Irene and other natural disasters.
At issue are funds earmarked for automakers and automotive component makers working on advanced-technology powertrains, vehicle weight-cutting technologies and other advancements that would help boost fuel economy and cut domestic dependence on foreign oil -- all while creating or saving so-called "green" jobs. A September 2008 government resolution cleared $7.5 billion in funding to be used to support as much as $25 billion in loans under the ATVM program. So far, about $3.5 billion has been distributed, meaning that more than a third of the remaining $4 billion may be in jeopardy. DOE spokesman Bill Gibbons said the Energy Department wouldn’t comment on ongoing budget negotiations.
Lobbying Begins
Some analysts say funding for Chrysler's advanced-technology programs in particular may be at risk, as Ford, Nissan and electric-drive vehicle makers Fisker Automotive and Tesla Motors already have secured funding through the program. Chrysler spokesman Vince Muniga told AutoObserver that the company hadn't been informed that any federal-backed funding for advanced-powertrain development was at risk. The DOE awarded Chrysler $10 million last month to develop materials that will help cut the weight of certain vehicle components by as much as 50 percent. Chrysler, which recently began a test program with plug-in hybrid-electric Ram pickup trucks, has lagged U.S. competitors Ford and General Motors in electric-drive powertrain development largely because of the company's financial difficulties in recent years.
Automaker and component representatives are already lobbying to keep the funding. While supporting a strong disaster relief program, "automobile manufacturers are focused on helping drive this nation towards economic recovery and greater energy security,” the Alliance of Automobile Manufacturers, American Automotive Policy Council and Motor & Equipment Manufacturers Association said in a joint statement issued Monday. “The next generation of fuel-efficient vehicles requires significant investment in research and development, a fact that Congress itself recognized when it created the Advanced Technology Vehicles Manufacturing Incentive Program with strong bipartisan support in 2007," the groups argued in their statement. How much such cuts would affect automakers' electrification efforts remains to be seen. "The push toward electrification is likely a result of the CAFE mandates, rather than goal in and of itself," said Lacey Plache, chief economist at Edmunds.com. "If the mandates can be met by other means, then the automakers will pursue those means."
Outsourcing Possible
Pike Research Senior Analyst Dave Hurst said it is less a question of whether advanced technology automotive manufacturing advancements would take place, and more a question of where. A Tennessee plant for Nissan's Leaf electric vehicle and a new assembly plant in Michigan for the fuel-efficient Ford Focus and Focus EV both were largely funded with an ATVM loan, and both facilities would've likely been built outside the country if the funds hadn’t been available, said Hurst, who added that he wasn't surprised to hear of a political movement to shift funds away from the program.
"The challenge with cutting this kind of program, despite its flaws, is that the program was designed for setting up production in the U.S.," said Hurst. "With the (Government Accountability Office) admonishment of the program for lack of oversight, the economy still sputtering, and elections coming, many Republicans are smelling the blood in the water and willing to push to cut the program." Among recipients of ATVM-secured loans are Ford ($5.91 billion in loans), Nissan ($1.45 billion) and electric-drive vehicle makers Fisker Automotive ($529 million) and Tesla Motors ($465 million), according to the DOE. Loans to those four companies either saved or created almost 38,000 jobs, according to the DOE.
Danny King: is a frequent contributor to AutoObserver.com.
View the original article here
0 comments:
Post a Comment