MONROE, La. (AP) - The federal Energy Department has rejected a
V-Vehicle Co. application for $321 million in loans, putting the
future of the startup automaker in jeopardy.
Company CEO Frank Varasano said he was "extremely surprised and
disappointed" by the decision. The state had pledged a $67 million
incentive package for the San Diego-based company, which has been
modifying the former Guide Corp. headlight plant in Monroe.
Varasano says the company will repay the state $6.2 million in
incentives already received. He says V-Vehicle's board will meet to
consider its next move.
The company sought the loan to begin production of a
fuel-efficent vehicle. It planned to employ 1,400 people and said
its prototype was in testing, though it has not been publicly
displayed.

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