Car Companies Seeking Government Loans For Green Technology Development.
The New York Times (12/2, B6, Wayne) reports that, while "Detroit's automakers are focused this week on convincing Congress to provide them $25 billion in federal aid," another $25 billion auto industry loan program, which was "set up by the Department of Energy" would "quicken the development of fuel-efficient cars." Since "it is open to any company with a promise and a plan to make more fuel-efficient cars, it has set off something of a gold rush, as a number of companies besides the Big Three, including Silicon Valley firms and old-line Detroit auto suppliers, angle for a piece of the program." Therefore "many of the companies flocked to Washington for a meeting Monday sponsored by the Energy Department to review the rules governing the direct loans, which the government is expected to start making in coming weeks." Curt Brainard, a spokesman for EcoMotors International, said, "It will give us a tremendous benefit to have the government behind us and as we ramp up with investors." EcoMotors "is developing a two-stroke diesel engine that it says will allow compact cars to get 100 miles to the gallon."
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