Alt-Energy Carmakers Jump on Bailout Bandwagon

Tesla, XP applied for loans through government program

Friday, Dec 5, 2008  |  Updated 5:42 PM PDT
View Comments (
)
|
Email
|
Print
Recession Rattles Tesla Motors, NUMMI Plant Workers

San Carlos-based Tesla Motors is asking the federal government for $400 million.

advertisement
Photos and Videos

Recession Rattles Tesla Motors, NUMMI Plant Workers

Local auto workers have differing opinions on whether the big three automakers should receive a federal bailout.
More Photos and Videos

The big three's attempt to get federal help could hurt a couple of Bay Area car companies.

San Carlos-based Tesla Motors is asking the federal government for $400 million and San Francisco's XP Vehicles has asked for $45 million.

The companies have applied for loans through the $25 billion auto industry loan program which is set up by the Department of Energy to speed the development of fuel-efficient cars.

But the funds might get tied up with Detroit's automakers.

The Energy Department will start making loans in the coming weeks.

The executives from Ford, General Motors and Chrysler are again making their pitch for billions of dollars in government loans.

This time they appeared before the House Financial Services Committee.

The CEOs from Chrysler and GM say their companies need immediate action to stay afloat.

The president of the United Auto Workers Union, Ron Gettelfinger, was also at the hearing.

Gettelfinger says although Ford's situation may not be as dire and Chrysler and GM, the big three depend on each other.

"Without assistance, General Motors and Chrysler could run out of funds in the near future and be forced to liquidate. The collapse of these companies would inevitably break down numerous auto parts suppliers...which in turn could lead to a collapse of Ford."

GM and Chrysler are asking for a total of an immediate $11 billion in emergency funds.

Get the latest headlines sent to your inbox!
View Comments (
)
|
Email
|
Print
Leave Comments
Bay Area Proud
Bay Area Proud is NBC Bay... Read more
Follow Us
Sign up to receive news and updates that matter to you.
Send Us Your Story Tips
Check Out