Ford, Nissan, Tesla to Receive U.S. Loans

Washington DC June 24, 2009; The AIADA newsletter reported that cultivating the next generation of fuel-efficient vehicles, the Obama administration said Tuesday it would lend $5.9 billion to Ford and about $2.1 billion to Nissan and Tesla in a government-industry partnership to build green cars.

MSNBC reports that Energy Secretary Steven Chu said the three automakers would be the first beneficiaries of a $25 billion fund to develop fuel-efficient vehicles. The loans to Ford will help the company upgrade factories in Illinois, Kentucky, Michigan, Missouri, and Ohio to produce 13 fuel-efficient vehicles.

The loans were designed to help auto manufacturers meet new fuel-efficiency standards of at least 35 mpg by 2020, a 40 percent increase over current standards. Dozens of auto companies, suppliers and battery makers have requested $38 billion from the loan program, which was created last year to give car companies and suppliers low-interest loans to retool their facilities for green vehicles and components such as advanced batteries.

Nissan will receive loans of $1.6 billion to retool its plant in Smyrna, Tenn., to build electric vehicles and construct a battery manufacturing plant.

Click here to read more about the U.S. government's plans to help automakers manufacture energy efficient vehicles.