State incentives for carmaker on hold as V-Vehicle misses key financing deadline
by Robert Travis Scott - Times-Picayune (excerpt)

BATON ROUGE -- Start-up automaker V-Vehicle will not get approval for a federally backed loan in time to meet today's deadline to qualify for the state's cash incentives backing the proposed car plant in Monroe, but company and state officials are optimistic the financial obstacles will be cleared up by the end of March and that the project will proceed. At stake is a 1,400-employee plant that by the end of 2011 would begin producing an economy car with fuel efficiency that company executives say will "dramatically exceed any electric vehicles or any hybrid vehicles" in the market. Louisiana Department of Economic Development Secretary Stephen Moret joined company chief executive Frank Varasano on a conference call with reporters Sunday afternoon to announce that the U.S. Department of Energy would not complete its review of V-Vehicle's application for a special loan program by today. March 1 is the date set in a state agreement for V-Vehicle to demonstrate that it has the money in place to proceed or else forfeit $87 million in cash and other incentives pledged by the state. "At this point we do not have an affirmative decision. However, we are in intensive discussions with the Department of Energy and their evaluation process is proceeding, " Varasano said in a letter to Moret. "DOE has indicated to us, as well as to you, that they will use their best efforts to reach a decision on our application by the end of March."