More good news for American automakers! The Department of Energy was due to loan General Motors $14.4 billion for production of fuel-efficient vehicles, but the automaker is saying it doesn't need the money. Citing improved financial performance, GM has withdrawn its loan application.
"This decision is based on our confidence in GM's overall progress and strong, global business performance," Chris Liddell, GM's vice chairman and Chief Financial Officer said in a statement.
GM's loan application predated the automaker's federal bail-out and bankruptcy. It was to be part of the DOE's Advanced Technology Vehicles Manufacturing Loan Program authorized by Congress in December, 2007.
That program was set up to help cash-strapped automakers build new highly fuel-efficient cars and comply with new stricter fuel economy rules.
The application process was "almost completed," GM spokesman Tom Wilkinson said, but the loan had still not been approved and GM never received any of the money.