Ford Motor Co. (NYSE: F) will be receiving a $5.9 billion loan from the U.S. Department of Energy to make sure some of its most strategic production facilities will be equipped to continue manufacturing the most fuel-efficient vehicles Ford can make.Plants in Illinois, Kentucky, Michigan, Missouri and Ohio will be among the first to be re-tooled and are beneficiaries of the Advanced Technology Vehicles Manufacturing program from the DOE.
No, this isn't a bailout or anything similar, but a loan to invest in future propulsion technology at a time when Ford is actually shining -- and this will give it another pedestal to stand above all other U.S.-based auto manufacturers.
By 2016, all passenger vehicles will be required to have a fuel efficiency rating of 35 miles per gallon -- and that's only six years away. If that actually happens, the reduction in foreign oil needed by the U.S., as well as the emissions drop into the environment, will help the Obama Administration reach the lofty goal set just this year.
Ford has lobbied for this loan for quite some time, and now it's in place to be the leader in alternative propulsion technology. And it still didn't take taxpayer money or handouts to do it.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
Reader Comments (Page 1 of 1)
9-22-2009 @ 10:51AM
Jerry said...
Sorry, it's just another Bailout of the auto industry. The billions given to GM and Chrysler were termed "loans" also, which will never be paid back. Ford will never pay this "loan" back either. They have $34 Billion in recent commercial loans which will have to paid back before this new Government "loan". When will they ever have enough profit to pay back $40 BILLION? Not in our lifetime. The Corporate book value of Ford right now, per share is a negative $6.00 per share. Kiss it goodbye, taxpayers.
By the way, Ford has gotten $1B in bailouts to their Credit arm, and $1B in bailout money through the Cash for Clunkers Government welfare program. So, Ford is now up to $8 Billion in bailouts.