WASHINGTON, March 17 Arconic Inc said on Friday
it had dropped its request for a $259 million loan from the U.S.
Energy Department, a day after the Trump administration proposed
killing the program aimed at boosting manufacturing of advanced
In 2015 the Obama administration announced a "conditional
commitment" to loan Alcoa Corp the $259 million to expand
production of lightweight materials for vehicles at its plant in
The loan was to be made under the $25 billion Advanced
Technology Vehicles Manufacturing (ATVM) program.
Arconic, which builds aerospace and automotive
parts, split from Alcoa last year.
"After thorough review, we decided not to proceed with the
ATVM loan as it no longer fit the needs of the company," the
company said in a statement on Friday.
On Thursday, the Trump administration proposed ending the
loan program, which was first funded by Congress in 2008 and
used to help provide critical liquidity to automakers hurt by
the financial crisis and other companies.
Tesla Inc, Nissan Motor Co and Ford Motor
Co were among the companies that received funding during
the downturn. The program also backed startup automaker Fisker
Automotive Inc and Michigan-based Vehicle Program Group, both of
which were shut down with a loss of $181 million to taxpayers.
The program has not funded a new project in six years.
Ending it could free up $4.2 billion in unused subsidies.
(Reporting by David Shepardson in Washington and Nick Carey in
Detroit; Editing by Paul Simao)