WASHINGTON (AP) — Humvee manufacturer AM General has paid $3 million to buy an Energy Department loan for a now-shuttered Michigan company that made vans for the disabled.
Vehicle Production Group, or VPG, suspended operations in February after its finances dipped below a minimum level required as a condition of the $50 million federal loan. The company had paid back $5 million earlier this year after it shut down and laid off 100 workers.
Sale of the loan means the government will lose about $42 million on its original investment. An Energy Department spokesman called the sale a last resort and said losses in a clean-energy loan program represent just 2 percent of the portfolio.
Indiana-based AM General said it will own and operate VPG through a subsidiary called Mobility Ventures LLC.