Arconic Inc stated it had dropped its request for a $259 million loan from the United States Energy Department, one day after the Trump administration proposed eliminating the program targeted at boosting manufacturing of advanced technology automobiles.
In 2015 the Obama administration revealed a “conditional commitment” to loan Alcoa Corp the $259 million to broaden production of lightweight products for automobiles at its plant located in Alcoa, Tennessee.
The loan was set to made under the $25 billion Advanced Technology Vehicles Manufacturing (ATVM) program.
Arconic, which develops aerospace and automobile parts, split from Alcoa in 2016.
“After extensive review, we chose not to proceed with the ATVM loan as it no longer fit the requirements of the company,” the company stated on Friday.
On Thursday, the Trump administration proposed eliminating the loan program, which was first funded by Congress in 2008 and utilized to help provide critical liquidity to car manufacturers harmed by the financial crisis and other companies.
