A hybrid vehicle company is closing its doors and blames the Obama administration’s burdensome loan application process for its failure, the Wall Street Journal reports.
Plug-in hybrid delivery van start-up Bright Automotive Inc. is winding down its operations after withdrawing its application for around $400 million from the U.S. Department of Energy.
Bright's application withdrawal follows those of Chrysler Group LLC and General Motors Co. The Rochester Hills, Mich., company blamed an overly rigorous and lengthy process to receive the department's Advanced Technology Vehicle Manufacturing loan program for the decision to shut its doors.
Bright claims in a letter to Sec. Steven Chu, dated Feb. 28, that 18 months earlier the company was told its funding approval was within "weeks not months." Bright said it was asked to meet more and more difficult requirements and finally the tasks became unacceptable and the company's resources were diminishing.
"Most rational and objective persons would likely conclude that your team was negotiating in bad faith," the letter states.
Reuben Munger, the company’s CEO, may have reason to feel miffed. He has given at least $234,000 to Democratic candidates and committees since 2007, including at least $9,600 to President Obama.