Will cleantech save them?

While U.S. automakers reported abysmal sales in 2008, some car companies are expecting that a growing interest in new electric and hybrid vehicle technologies could resuscitate their coffers and their reputations. And many are looking to federal funds aimed at accelerating fuel-efficient auto technology as a way to jump start production at a time when many consumers have put the brakes on big purchases. 

The Advanced Technology Vehicle Manufacturing (ATVM) incentive program, a pool of $25 billion established by the 2007 Energy Independence and Security Act, provides loans, grants and loan guarantees to auto companies working on more fuel-efficient cars, including electric vehicles.

Among the 75 automakers that have submitted applications are San Carlos, Calif.-based electric car manufacturer Tesla Motors and Irvine, Calif.-based plug-in hybrid maker Fisker Automotive Inc.

Fisker, which unveiled its first production car, the Fisker Karma, in January, says it is on track to begin its first auto deliveries in late 2009, even without federal loans or grants.

"We're not expecting anything and we can move ahead without it," says Fisker spokesman Russell Datz of the government money. As of January 2009, the company had received about 1,300 orders for the plug-in hybrid Karma, which comes at a starting price of about $88,000, according to Datz.

Fisker, which raised $75 million in venture capital in the fourth quarter of 2008 led by Menlo Park, Calif.-based Kleiner, Perkins, Caufield & Byers, has managed to stick to its development schedule for the past two years, Datz says.