The Energy Department is set to lend money to Ford (NYSE: F), Tesla, and Nissan (NASDAQ: NSANY), according to the Associated Press. The report cites anonymous sources, with the official announcement set for today in Dearborn, Michigan. Reportedly, Ford has asked to receive $5 billion in loans by 2011, although the sources were not certain on how much money the automaker would receive. Nissan's requested amount was undisclosed and Tesla has reportedly asked for $450 million. The loan program the automakers are trying to tap into was approved by Congress last year in order to help car companies and suppliers develop green vehicles and components (such as the advanced battery) and help automakers meet the new fuel-efficiency standards of 35 miles per gallon by 2020.
On top of the $5 billion reportedly requested, Ford has asked for $11 billion from the loan program, stating it would invest the $14 billion into advanced technologies during the next seven years. Ford plans on bringing "several" battery-electric vehicles to the roads, including a van in 2010 for commercial use, a small sedan in 2011, and a plug-in vehicle by 2012, according to the AP.
As for the others, Nissan is developing an all electric car that will have 100 miles of pure battery range set for release in late 2010. The car will initially be built in Japan, but eventually move to the company's plant in Smyrna, Tennessee. Tesla wants its loans to help build an assembly plant for its Model S sedan, which is slated to be offered in 2011. Reportedly, the company is also requesting $100 million to finance an advanced battery and powertrain manufacturing facility.
Honestly, this is money that I don't think too many Americans will mind giving the automakers. Remember, this fuel-efficiency program was brought into being by the new administration. Yes, these companies should have been working toward fuel efficiency, but they are obviously closer than some others. By nature, we will want to place blame as to why companies need money at all and how it is breaking the system, but it is nice to know that at least some automakers are making an attempt to comply to federal standards.
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Reader Comments (Page 1 of 1)
6-23-2009 @ 12:51PM
Daniel said...
Stop the welfare! What about the companies not on government welfare that are being put at a competitive disadvantage because of these loans. What about all of the people and industries who this money was taken from? They could have put this capital to work on productive things as well.
6-23-2009 @ 10:22PM
kurtboubong said...
Whoa! Ford, an American company, Tesla, an American company, But Nissan? Let the Japanese fund there own companies!