Tuesday, June 23, 2009

Energy Department Awards Advanced Technology Loans


Secretary Chu of the Department of Energy has just announced a new $25 billion loan program for the automobile manufacturers. The loan program is designed to help automakers meet the new CAFE standards, which will increase the average fuel economy of new cars from 27.5 to 35 mpg by 2016. The only way to do that is to increase production of fuel efficient automobiles. and reduce production of gas guzzlers.

These are the companies and the amounts that have been announced so far!
  • Ford $5.9 billion.....for will use the money to retool five plants, which will improve the mileage of two million cars produced annually.

  • Nissan $1.6 billion....to modify its Tennessee plant to produce zero-emission electric vehicles and the lithium-ion battery packs. They estimate that production will eventually ramp up to 150,000 electric vehicles annually. Currently, Nissan manufacturers their full size pickup and SUV's at the plant.

  • Tesla $465 million....which will be used to build the Model S plant in Hawthorne, California.

Additional funds will be allocated to both large and small manufacturers and part suppliers per Secretary of Energy Steven Chu. The Department of Energy has indicated that these upgrades should lead to fuel savings of more than 20 million gallons per year.


SUMMARY:

President Obama has set a new direction with fuel efficiency with the new CAFE standards. Now his backing up his new laws with something to help the beleaguered auto industry.


The U.S. has mismanaged it's energy policy for the last forty years....now that oil is getting expensive we are having to pay the piper....higher energy prices. Brazil has gone from a substantial importer of oil to an exporter of ethanol. They have managed their energy policies wisely!


The importation of substantial amounts of oil is depleting the U.S. of substantial amounts of cash....if this goes on for to long it will be the largest transfer of wealth in modern history. Translated that means that the U.S. will become a second rate country with the living style to match.


So, I support President Obama and Energy Secretary Chu in doing the right thing! We as a country need to find ways to improve our energy usage and eventually achieve energy Independence. This is such a major project that only the government involvement will allow it to happen.

This maybe the second step to the revitalization of the U.S. auto industry....and the possible resurgence of American automobile production.


4 comments:

  1. Hi Pete

    I really like the way you write this post, very well written. And I completely agree with on what you said about the U.S. I sure hope this will help us move toward rebuilding our automobile industry.
    Thanks,
    Giovanna Garcia
    Imperfect Action is better than No Action

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  2. Hello Giovanna,

    Yes, we have to rebuild our manufacturing base..we cannot keep buying products from everyone else...the credit card will me maxed out soon.

    It is the same with energy...we cannot take it for granted any more. But, we can build green industries and lead the world again.

    Thank you for your gracious comment!

    Pete Baca
    The Car Enthusiast Online

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  3. Hi Pete .. I'm pleased the States are looking to sort out their energy policy, as we are here in the UK. Catalysts 'saved us' in 80s .. but now we need to go further ..

    I've just had a quick look at the Wiki site on ethanol in Brazil .. and it does look like they've got their policy right ..I thought they might be taking too much land .. perhaps if they over did it - they might .. ie if demand from other countries (the west .. but not the States - as you've got your own supply) becomes too high .. it could be detrimental to Brazil.

    It's an interesting topic .. I might do a post on it .. as I guess no-one - like me - knows much!?

    All the best - Hilary Melton-Butcher
    Positive Letters

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  4. Hi Hilary,

    I have been impressed with what Brazail has done....going from a major importer to an exporter of energy. The current president
    Luiz Lula da Silva, is doing a fabuous job with their economy.

    Ethanol was a big rage here a few years back...but has been put on the back burner since gas prices have dropped. It is also controversial since analysts calculated that it costs more energy to produce than it is worth. That debate continues!

    Thanks for the interesting comment!

    Pete Baca
    The Car Enthusiast Online

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