GM withdraws requests $14.4 billion for energy loans;

GM has withdrawn a request for a $14.4 billion in energy loans from the United States government. Fuel efficient vehicles like the Honda Accord Hybrid can be purchased from Honda Dealers Washington. The money was to be be used to develop energy efficient and alternative energy vehicles by the company. Other alternative energy vehicles such as the Honda Fit Hybrid can be purchased from Honda Dealers Maryland. GM has decided to not to take out the loan because the company predicts growth over the next few years and it satisfied with the progress and recent performance over the past year. The Department of Energy is offering loans to companies for investment and development of alternative energy vehicles.

Salisbury Honda also sells Honda models which are fuel efficient. GM is looking to minimize its debts as a part of its long term plan for growth. Therefore, the company has decided to not take on more debt. Ford Motor Co. and Nissan both have utilized DOE loans to fund their own investment and research into alternative energy technology. The program was created in 2007 due to fuel economy standards being raised by the EPA and due to rising gasoline prices. The Obama Administration has also encouraged research into alternative energy to reduce dependency on foreign oil.

GM wants their balance sheet to have a small amount of debt so that most of the projects that the company begins can be self funded. GM is currently the second largest automaker in the world and it is expected that GM income could be anywhere between $4 to $7 billion per year. GM raised $23.1 billion from investors at its IPO and reduced the stake of the government in GM to 25 percent, down from 61 percent. The DOE loan application was submitted in October of 2009, soon after the company had filed for bankruptcy.