DETROIT (Reuters) – Ford Motor Co. and Japan’s Nissan Motor Co. will receive nearly $8 billion combined in U.S. government loans to spur development of fuel efficient vehicles, the U.S. Energy Department said today.
Ford will receive $5.9 billion to retool factories in Michigan, Ohio, Illinois, Kentucky and Missouri in order to produce 13 models.
Nissan also is getting a $1.6 billion loan and startup green car maker Tesla qualified for $465 million.
Energy Secretary Steven Chu made the announcement today at an event at Ford headquarters in suburban Detroit.
The U.S. government first appropriated $25 billion for the program last fall. The loans are being earmarked for automakers making cars with fuel economy improvements of at least 25 percent above 2005 levels. The cars must be made in U.S. factories.
Ford is focusing on electrification and improvements to conventional engines as well as converting two truck plants for car production.
“This green partnership between Ford and the U.S. government will help accelerate the development of advanced technologies for even better fuel efficiency and emissions,” Ford CEO Alan Mulally said in a statement.
"Ford is absolutely committed to fuel economy leadership with every new model we introduce. In fact, we plan to invest nearly $14 billion in advanced technology vehicles in the next seven years.
“Our partnership with the Department of Energy also will help retool our U.S. plants more quickly to produce fuel efficient vehicles and help meet the new, rigorous fuel-economy requirements.”
The Obama administration previously said it would draw down $10 billion in loans this year and award the balance in 2010. The loan program is intended to help carmakers meet stricter government fuel-efficiency targets by spurring development of advanced gasoline-electric hybrids, all-electric vehicles and other efficient technologies.
Ford Motor Co. and Japan’s Nissan Motor Co. will receive nearly $8 billion combined in U.S. government loans to spur development of fuel efficient vehicles, the U.S. Energy Department said today.
I guess that wording makes it sound more of something that was pushed on them as opposed to 100% their decision.
because the gov’t took an ownership stake in the companies in return for providing the loans. These are just standard corporate loans at a discount rate for a good cause.
If your a company that doesn’t need the money to stay a float, why would you take it? GM and Dodge absolutely needed the money or else they couldn’t pay their bills any longer. Wouldn’t you wanna stand out as the only american car manufacturer not needing government aide?
That’s my question. Does Nissan even have ANY plants in the USA?
Loan or bailout, why give them a better rate if they aren’t US based? Shouldn’t that be an incentive?
Nissan North America - U.S. Manufacturing
Nissan has three production plants in the United States - in Smyrna and Decherd, Tennessee, and Canton, Mississippi. Production at Nissan’s Smyrna Plant began in June 1983. The vehicle assembly plant has an annual production capacity of 550,000 vehicles and represents a capital investment of $2.5 billion. The plant produces the Nissan Altima, Nissan Maxima, Nissan Xterra, Nissan Frontier and Nissan Pathfinder.
The vehicle assembly plant in Canton, Mississippi, began producing vehicles in May 2003. The $1.4 billion plant now produces the Nissan Altima, Nissan Quest, Nissan Armada, Nissan Titan and Infiniti QX56. The plant has an annual production capacity of 400,000 vehicles.
Nissan’s powertrain assembly plant in Decherd, Tennessee, began production in May 1997. Today the plant manufactures all the engines for the complete lineup of Nissan and Infiniti vehicles produced in the U.S. The plant also forges crankshafts, and cylinder block casting operations will begin in the spring of 2008.
Nissan North America - Smyrna
983 Nissan Drive
Smyrna, TN 37167
Phone: (615) 459-1400
Nissan North America - Canton
300 Nissan Drive
Canton, MS 39046
Phone: (601) 855-6010
Nissan North America - Decherd
520 Warren Chapel Road
Decherd, TN 37324
Phone: (931) 962-5000
Plus their various non-manufacturing presence in the US.