Chrysler is in deep trouble, what with its bankruptcy, and bondholder battles.
That doesn’t mean it’s taking its eyes off the prize, so long as the prize is grabbing more taxpayer money. This time it’s under the auspice of funding electric vehicle research.
Reuters: U.S. automaker Chrysler LLC said on Tuesday it submitted proposals totaling $448 million to the U.S. Department of Energy to research and develop electric vehicles and plug-in hybrid models.
Chrysler and its “partners,” plus the Department of Energy, would pay $224 million each should the proposals be approved and would include an investment of up to $83 million to build a new technology and manufacturing centre in Michigan to help develop and assemble these vehicles. That complex should be functional by 2010 and produce more than 20,000 vehicles a year, Chrysler said.
The applications for matching funds were made as part of two initiatives at the Department of Energy that are designed to speed up the development and manufacturing of electric vehicles and plug-in hybrids.
Startups like Fisker and Tesla, that are pure electric car companies are vying for this money as well. They’ll probably get money as well, but if they lost out while Chrysler nabbed the money it would be a shame.
Chrysler had its chance to build an electric car, but it didn’t do it. Besides, we can just tack $225 million onto Chrysler’s bailout bill, and call it a day. No need to tap the DOE’s fund.
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