Advanced Technology Vehicle Manufacturing Program

What is 'Advanced Technology Vehicle Manufacturing Program'

Advanced Technology Vehicle Manufacturing Program is a subsidized loan scheme established by Section 136 of the Energy Independence and Security Act of 2007. The program is for automobile and auto parts manufacturers who plan to produce fuel-efficient, advanced technology vehicles and components in the United States.

BREAKING DOWN 'Advanced Technology Vehicle Manufacturing Program'

The Advanced Technology Vehicle Manufacturing Program is administered by the U.S. Department of Energy. Automakers who have benefited from the program included Ford, Nissan, Tesla Motors and Fisker Automotive. Ford accepted a $5.9 billion loan in 2010 to modernize 13 facilities in 6 states, to enable these sites to manufacture fuel-efficient vehicles and components, including the EcoBoost engine. Nissan secured a $1.45 billion loan in 2010 to finance the construction of the all-electric Leaf vehicle assembly line, a battery facility, and an electric motor manufacturing facility in Tennessee. Tesla borrowed $465 million from the Energy Department to help engineer and design its electric model S, and renovate and repurpose a shuttered auto plant in California.

Goals of the Advanced Technology Vehicle Manufacturing Program

The Energy Independence and Security Act of 2007, a law passed by the 110th Congress, established the program. Democrats controlled both houses of Congress in 2007, and the bill had the stated purpose of moving the United States toward greater energy independence and security, increasing the production of clean, renewable fuels and promoting research on greenhouse gas capture and storage options. Republican President President Bush signed the law on December 18th 2007, in an effort to achieve his goal of reducing American gas consumption by twenty percent over ten years. Democrats framed the program as one which would promote domestic manufacturing, while President Bush championed it as a means to reduce American dependence on foreign oil sourced from hostile regimes. 

Results of the Advanced Technology Vehicle Manufacturing Program

Ford’s EcoBoost Engine was one of the most successful byproducts of the program, and the company said that between 2009 and 2014, the Advanced Technology Vehicle Manufacturing Program helped it produce cars that eliminated 2.38 million tons of carbon dioxide emissions and saved 268 million gallons of gasoline. Starting in 2014, the United States Department of Energy endeavored to recruit a larger number of vehicle parts manufacturers to the program to finance research and development in energy efficient components. According the Motor & Equipment Manufacturers Association, vehicle parts manufacturers are responsible for one-third of all research and development in the automobile manufacturing.