backtop


Print 106 comment(s) - last by JohnnyCNote.. on Aug 6 at 4:37 PM


Joe Biden is in Michigan today, reportedly to announce the first round of $2B in battery grants.  (Source: The Weekly Standard)
Grants bring good news to state's troubled economy

Michigan is among the states that has been hit hardest by the recession.  The government went to extreme measures to keep the state's economy from collapsing, including assuming majority ownership of GM and propping up Chrysler through bankruptcy.  Now the federal government is preparing to reach deeper into its pockets to help the state out even more.

Vice President Joe Biden is in Michigan today at the NextEnergy Center in Detroit.  He is reportedly going to announce the first round of $2B USD in Department of Energy battery grants.  The grants should boost the state's economy and help develop better electric vehicles, currently favored as the future of the car industry by the domestic automakers.

The federal government is also separately loaning money to battery manufacturers under the $25 billion Advanced Technology Vehicle Manufacturing Incentive Program (ATVM).  Among the battery manufacturers that applied for that loan are A123 Systems, EnerDel, and Compact Power.  Thus far Ford, Nissan, and Tesla Motors received ATVM loans.  It is unknown who the grants will go to, but A123 Systems, EnerDel, and Compact Power seem like leading candidates.

Ed DeSeve, the president's special advisor on the stimulus program, had stated about on July 21, "I think you'll see over the next week or so ... some industrialization focus, for example, on the battery grants that are coming.  It makes sense to put those in places where there is productive working capacity -- people who can do the jobs. There are plants where the jobs can exist, and I think you are going to start to see more and more of that over time."

The ATVM loans must be repaid eventually by automakers and battery makers.  However, the DoE grants do not have to be repaid.  Michigan has also offered battery makers some big tax cuts in hopes of luring business into the state.

A limited amount of tickets to Mr. Biden's appearance have been offered to the public on a first-come-first-serve basis.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Michigan
By mdogs444 on 8/5/2009 3:01:39 PM , Rating: 2
Thanks for elaborating for me Mr Peabody. I'm glad someone was able to understand what I was trying to say.


RE: Michigan
By knutjb on 8/5/2009 4:47:33 PM , Rating: 2
I saw it too and to provide another example: look at California, same issues, different industries. That state has been controlled by democrats in the legislative branch, the ones who write the laws, since before Reagan was governor. Though Reagan left a massive surplus for Jerry Brown to squander away on ineffective social programs.

Their over-taxing has sent their industrial base either to other states, i.e. Nevada and Texas, and other countries eliminating those who pay the states bills at an alarming rate, leaving it for those who don't. If illegal aliens paid so much in taxes, California would be drowning in money, not debt.


"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki