The U.S. Department of Energy says a loan program that was used by successful start-up Tesla and troubled Fisker Automotive is looking for business.
The loans could figure into decisions on the future course of Fisker by Chinese parts supplier Wanxiang. Wanxiang recently purchased assets of Fisker.
U.S. Secretary of Energy Ernest Moniz discussed improvements to the Advanced Technology Vehicles Manufacturing Loan Program at the Motor & Equipment Manufacturers Association Legislative Summit this week.
The program includes automotive component manufacturing. Wanxiang is primarily a parts maker. With the purchase of Fisker, Wanxiang acquired the former GM Boxwood plant. Wanxiang is studying possible uses for the Delaware plant. Back property taxes were paid as part of the sale.
The program, administered by the Department’s Loan Programs Office (LPO), has more than $16 billion in remaining loan authority to support the production of fuel-efficient, advanced technology vehicles and components in the nation. The department announced steps to improve the program, clarify eligibility requirements and increase responsiveness to applicants.
To date, the program has provided about $8.4 billion in financing for projects with total project costs of over $14 billion.
According to estimates, the federal loans have supported about 35,000 direct jobs across eight states: California, Illinois, Michigan, Missouri, Ohio, Kentucky, New York and Tennessee.
Most loans went to major automakers, although electric automaker Tesla received a loan, which it has since paid back.
Currently, the department’s Loan Programs Office supports a portfolio of more than $30 billion in loans, loan guarantees, and commitments, supporting more than 30 closed and committed projects.
The projects that the program has backed include one of the world’s largest wind farms; several of the world’s largest solar generation and thermal energy storage systems; and more than a dozen new or retooled auto manufacturing plants.
One of the program’ s few failures was Fisker. The department suspended the half a billion dollar loan that was aimed at reopening the Delaware auto plant for production of the mid-sized Fisker Atlantic.
Fisker used about 40 percent of the loan as it burned through $1 billion, primarily from private investors. Delaware also granted a $20 million loan to Fisker.
That led to the shutdown of Fisker and a bankruptcy filing in Wilmington that led to the sale of assets to Wanxiang.
Another failure was bankruptcy of solar cell maker Solyndra. Both Fisker and Solyndra became issues in the previous presidential camapign. Automotive News reported that no loans have been granted under the program since 2011.
