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Gas industry

$50 Million Conditional Loan Commitment for Compressed Natural Gas Vehicle Production

Strategic Insights

— 1 min read

The U.S. Department of Energy announced a nearly $50 million conditional loan commitment to The Vehicle Production Group LLC (VPG) to support the development of the six-passenger MV-1, a factory-built wheelchair accessible vehicle that runs on compressed natural gas. The vehicle will be produced at the Mishawaka, Indiana AM General Plant, creating new jobs and promoting the use of alternative fuels. As part of the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, the Department of Energy aims to support innovative technologies that create clean energy jobs while reducing the nation's dependence on oil.

Key Takeaways:

  • The U.S. Department of Energy has offered a nearly $50 million conditional loan commitment to The Vehicle Production Group LLC (VPG) to support the development of the MV-1, a compressed natural gas vehicle.
  • The MV-1 will be produced at the Mishawaka, Indiana AM General Plant, creating over 900 jobs between production, part suppliers, sales, and marketing.
  • Vehicle Production Group estimates that the project will produce approximately 22,650 vehicles per year at full capacity.
  • The MV-1 is designed from the ground up for wheelchair accessibility and meets or exceeds the guidelines of the Americans with Disabilities Act.
  • The vehicle features a deployable access ramp with a 1,200-pound weight capacity, a 36-inch entryway, and an interior that accommodates up to six occupants with the optional jump seat, including a wheelchair passenger and the driver.
  • The ATVM Loan Program supports the development of innovative technologies that create thousands of clean energy jobs while reducing the nation's dependence on oil.
  • The Department of Energy has provided over $8 billion in loans to advanced technology vehicle manufacturers, including Ford Motor Company, Fisker Automotive, Nissan North America, and Tesla Motors.

Statistics:

  • $50 million nearly conditional loan commitment from the U.S. Department of Energy to support MV-1 development.
  • 900+ jobs created between production, part suppliers, sales, and marketing.
  • 22,650 vehicles expected to be produced per year at full capacity.
  • Over $8 billion in loans provided by the Department of Energy to advanced technology vehicle manufacturers.

Sources:

  • "U.S. Department of Energy." (No date)
  • "The Vehicle Production Group." (No date)

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