Bright Automotive says goodbye 0

General Motors are heavily invested in electric vehicle technologies and this includes investing in small companies which deal with the technology. Unfortunately, One of those companies named Bright Automotive has folded. General Motors has invested a tremendous $5 million into the company.

The reason behind the closure of the company was said to be the failure to receive a federal loan from the American Government. The company’s office was based in Rochester Hills in former Chrysler premises.

The loss of plenty of direct and in direct job

Bright Automotive had 60 employees who have all lost their jobs. They were based in the regions of Michigan and Indiana. The employees included former workers of Ford, Chrysler and General Motors themselves. Future jobs set up by the company have also been cancelled which means thousands of workers will lose jobs indirectly. Bright Automotive had also signed an agreement with AM General which would have promises a total of 400 union workers being hired.

Closure of company confirmed through letter.Reuben Munger confirmed the company’s closure through a letter written to Mike Donoughe.

This makes Bright Automotive the second car company to shut down due to waiting for a loan. Aptera Motors also shut down as they were waiting for a loan from the Government. The company closed in December and were based in California.

Chrysler loan cancelled

Chrysler cancelled their application for a $3.5 billion loan after the Energy Department intervened adding regulations will prove to be more difficult for Chrysler to handle.

Severstal OAO loan rejected

Steel maker Severstal OAO was recently rejected a loan by the Energy Department. The amount was $730 million and would have brought about 675 jobs in the America and created more than 2,700 in direct jobs. The attempts at getting a loan were going on for a number of years and came as major disappointment when it was rejected. Severstal OAO would have produced work in association with lightweight road coupled plug in commercial work truck.

A deal doomed from the start

The deal between General Motors and Bright Automotive was established in August 2010. General Motors injected $5 million in cash. The deal was established in association with General Motors Ventures LLC, a $100 million start-up company.

The Energy Department have not yet officially commented on the closure of Bright Automotive as of yet.