Legislation would help automakers fund 'green technologies'

KEN THOMAS
Associated Press

WASHINGTON - A proposal being drafted in Congress would give automakers up to $20 billion in federal loan guarantees to develop "green technologies" such as plant retooling and the research and development of alternative fuel vehicles.

The legislation, expected to be released next week by Rep. Mike Rogers, R-Mich., would help domestic automakers more easily borrow funds to develop the technologies while speeding up the introduction of energy-efficient vehicles into the marketplace.

While the loans would open to all automakers, it would most likely help Ford Motor Co. and General Motors Corp., which have credit ratings in junk status and face greater hurdles in borrowing money.

Rogers said the companies face reorganizational and operational costs stemming from their turnaround plans, and the bill would give them access to cheap capital to further develop hybrid-electric, clean diesel and hydrogen fuel cells.

"This is a big moment in automotive history and I think it's important that we make the investment in the next generation of vehicles," Rogers said.

Automakers said they were open to the concept, which is modeled after a $2 billion loan guarantee program that the Energy Department recently established for innovative energy technologies.

Ford spokesman Mike Moran said the automaker has had preliminary discussions with the Energy Department about the technology program and they would need to see if Rogers' proposal fits with their initiatives on advanced vehicle technologies.

"We're glad they're looking at offering it to all the manufacturers. We think that is the right tact to take," he said.

GM spokesman Greg Martin called the Rogers' proposal "an intriguing idea that merits further study."

Rogers stressed that the proposal is not a bailout of domestic automakers. He said the bill, which would also be open to suppliers such as Delphi Corp., would require all loan guarantees to be used domestically.

"It allows us to innovate our way out of the problem," Rogers said Wednesday.

The measure is co-sponsored by House Majority Whip Roy Blunt, R-Mo., and Rogers said he hopes to win support for the plan before the end of the year.