Ford Motor Co will receive nearly US$5.9B in US government loans to spur development of more fuel-efficient vehicles, the Obama administration said last Tuesday. Japan’s Nissan Motor Co Ltd will receive US$1.6B, and start-up Tesla Motors Inc will receive US$465B in advanced technology financing from the Energy Department program. “By supporting key technologies and sound business plans, we can jumpstart the production of fuel-efficient vehicles in America,” Energy Secretary Steven Chu said at Ford headquarters. “These investments will come back to our country many times over by creating new jobs, reducing our dependence on oil, and reducing our greenhouse gas emissions,” he said. The agency plans additional loans over the next several months to automakers and suppliers. Chu said the administration began talks with Chrysler Group LLC on possible energy technology loans immediately after the company stepped out of bankruptcy protection this month. It is also having “technical” discussions with General Motors Corp, which is currently reorganizing in bankruptcy proceedings. Both companies applied for financing last year but their financial distress disqualified them from consideration in the first round of financing. The US$25B program is only open to viable (real) companies.
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