Ford, Nissan, Tesla to get govt loans: report | autos | Hindustan Times
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Ford, Nissan, Tesla to get govt loans: report

The Energy Department is lending money to the Ford Motor Co and two other automakers from a $25 billion fund to develop fuel-efficient vehicles, congressional officials said.

autos Updated: Jun 23, 2009 07:50 IST

The Energy Department is lending money to the Ford Motor Co and two other automakers from a $25 billion fund to develop fuel-efficient vehicles, congressional officials said.

Energy Secretary Steven Chu was scheduled to announce the loan funding for Ford, Nissan Motor Co and Tesla Motors Inc on Tuesday in Dearborn, Michigan, the officials said. They requested anonymity because an official announcement was pending.

Dozens of auto companies, suppliers and battery makers have sought a total of $38 billion from the loan program. Ford has asked to receive $5 billion in loans by 2011, but it was unclear how much money the automaker would receive. Nissan has applied for an undisclosed amount of assistance, while Tesla has sought $450 million.

The Energy Department declined to comment on the plans. Chu has not yet announced the first recipients of the loans, which have been closely watched by members of Congress from states with auto plants and suppliers.

Congress approved the loan program last year to help car companies and suppliers retool their facilities to develop green vehicles and components such as advanced batteries.

The loans were designed to help the auto manufacturers meet new fuel-efficiency standards of at least 56 kilometers per gallon by 2020, a 40 per cent increase over current standards.