One of the Obama administration's "investments" in "green" technology was a U.S. Department of Energy (DOE) "investment" of $50M to Vehicle Production Group LLC (VPG) to promote "advanced vehicles." VPG needed the loan to construct "green" wheelchair-accessible vans.
From the beginning, however, VPG couldn't meet its performance targets in building a six-passenger MV-1 van which operates on compressed natural gas, according to Reuters.
VPG went belly up and, last April, DOE recovered $8M of the loan which included the seizure of $5M in VPG's accounts. The remaining $3M came from DOE's sale of the VPG loan at auction August.
AM General who now owns and operates the MV-1 business and intends to rev up production, sales, and product development of the "green" van in mid-October. Competitors include: Fisker, Ford, Nissan, and Tesla.
So, what's a $42M loss in the high-minded cause of making progress in developing "green" technologies?
In the free market it's called "bankruptcy" and shareholders are left holding the bag. But, for the federal government, it's taxpayer money that, it is said, had to be spent to promote the promise of much-needed "hope" and "change." Compared to a $17T national deficit, that $50M is just chump change. Time to jget over it, no?
Let the discussion begin...
To read the Reuters article, click on the following link:
"U.S. Sells $50 Million Green-Tech Loan at Sharp Discount."