Chrysler Group LLC has withdrawn its application for an Advanced Technology Vehicles Manufacturing loan from the U.S Department of Energy.
The maker originally had hoped to receive as much as $7 billion through the program, designed to assist in the development of advanced, high-mileage powertrain technologies – in the process reducing U.S. dependence on imported petroleum. It applied shortly after emerging from bankruptcy in 2009, but distribution of funds has largely been put on hold as the ATVM program has become caught up in Washington’s increasingly partisan politics.
Ford was able to secure a loan, as was Japanese automaker Nissan and a number of solar panel manufacturers and battery companies. However, the loan program, which was signed into law by President George W. Bush in 2007, has come in for heavy criticism from tea party Republicans after the bankruptcy of Solyndra, a Calfornia-based solar panel manufacturer, which received a $500 million loan.