Obama administration doesn’t require GM and Chrysler to make electric cars

The Obama administration is drawing a bright line between their preference for electric vehicles and their responsibility to manage the tax payers stakes in GM and Chrysler, according to Reuters. “We obviously would be very happy if Chrysler and GM were making lots and lots of high mileage cars. It’s not a prerequisite. It’s not an obligation,” Ron Bloom, head of Obama’s autos task force told Reuters on Tuesday.

Both companies however, do intend to release more fuel efficient vehicles and lines of smaller cars. The Chevy Volt, due out by GM next year is the company’s spear head in this fuel-efficiency movement, while Chrysler sidelined its plan for a similar vehicle seeing as how such a car would be inconsistent with their five-year business plan released earlier this month.

Both automakers have applied for billions of dollars in Energy Dept. loans for assistance in equipping their factories for output of more fuel-efficient vehicles. Bloom has said however that the Energy Dept. will retain complete autonomy in the decision process regarding who receives loans and who doesn’t.

– By: Stephen Calogera

Source: Reuters