DOE to Resume Alternative-Vehicle Development Loans

The U.S. Dept. of Energy plans to revive its controversial $25 billion Advanced Technology Vehicle Manufacturing loan program, Bloomberg News reports.

DOE says it is preparing to launch an outreach campaign to potential applicants. The ATVM initiative stopped making loans in 2011 with about $15 billion in funds remaining after being attacked by Republican lawmakers for supporting companies notably hybrid maker Fisker Automotive Inc. that later failed. Fisker drew down $193 million of $529 million awarded before halting production and defaulting on its loan.

DOE has had better luck with loans to Ford ($5.9 billion), Nissan North America ($1.4 billion) and Tesla ($465 million). Tesla repaid its loan in May, and Bloomberg says Ford and Nissan are making scheduled payments.

Analysts tell Bloomberg that the DOE program may have lost its appeal. They note that inexpensive private funding is now available, but without the exhaustive financial reporting and performance requirements associated with the ATVM program.