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GM has withdrawn a request for a $14.4 billion in energy loans from the United States government.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.

GM to Bring Back Mild Hybrids?

GM might be bringing back mild hybrid vehicles after the company previously launched just one model with the technology. GM's Saturn brand which was discontinued had one mild hybrid model, and previous year GM vehicles can be browsed at a Bradenton Used Cars dealership. The Saturn model was capable of an increased fuel efficient of 15 percent. You might also consider checking out different VW Specials for deals on the latest or past VW models as well.

Suzuki Rochester also sells vehicle models which are fuel efficient like the Swift. GM has decided to reintroduce vehicles that may feature mild
hybrid technology and there may be vehicles released next year that have this technology. Mild hybrids are vehicles that are not powered by electric engines, but they start and restop the engine with batteries in order to save on gas costs. The electric motor also provides a boost during acceleration, but the difference is that mild hybrids can not be propelled on electricity alone.

GM may also end up making their own electric motors for their new mild hybrid vehicles rather than purchasing them from a supplier. The first GM electric motors will be produced at the company's White Marsh powertrain plant in Baltimore Maryland. A GM executive said that it is important for GM to understand hybrid and electric vehicle technology in order to be able to properly integrate this technology in its latest models.

With greater understanding of electric motors the company will be able to create better and more powerful electric vehicles that are more competitive with automakers like Toyota and Honda who have had more experience with electric vehicle production. Still, GM is ahead of the curve since the company has already made plans to introduce an extended range electric vehicle by the end of 2010 and there are other plans for mild hybrids or other electric vehicles to be released in 2011 and 2012.