Saturday, July 26, 2014

Energy Department loses $42M on loan to van maker

September 06. 2013 5:40PM
Associated Press

Story Tools
PrintPrint | E-MailEMail | SaveSave | Hear Generate QR Code QR
Send to Kindle

(AP) Humvee manufacturer AM General has paid $3 million to buy an Energy Department loan for a now-shuttered Michigan company that made vans for the disabled.

Vehicle Production Group, or VPG, suspended operations in February after its finances dipped below a minimum level required as a condition of the $50 million federal loan. The company had paid back $5 million earlier this year after it shut down and laid off 100 workers.

Sale of the loan means the government will lose about $42 million on its original investment. An Energy Department spokesman called the sale a last resort and said losses in a clean-energy loan program represent just 2 percent of the portfolio.

Indiana-based AM General said it will own and operate VPG through a subsidiary called Mobility Ventures LLC.

Associated Press

comments powered by Disqus Commenting Guidelines
Mortgage Minute

Search for New & Used Cars

Used New All

Search Times Leader Classifieds to find just the home you want!

Search Times Leader Classifieds to find just what you need!

Search Pet Classifieds
Dogs Cats Other Animals

Social Media/RSS
Times Leader on Twitter
Times Leader on Youtube
Times Leader on Google+
The Times Leader on Tumblr
The Times Leader on Pinterest
Times Leader RSS Feeds