Ford gets $5.9B, Nissan gets $1.6B in Advanced Technology Loans
June 25, 2009 8:10 AM
comment(s) - last by
Ford will use its loans to retool its factories to produce more fuel efficient models, like the 2010 Ford Fusion Hybrid, pictured here.
(Source: 2nd Green Revolution)
Steven Chu, US Energy Secretary and Nobel Prize winner
Ford reaps more benefits of not accepting government bailout funds
Ford will receive $5.9 billion in government loans to retool factories for production of fuel efficient vehicles, while Nissan will receive $1.6 billion. Tesla Motors also received approval for a
$465 million loan
Energy Secretary Steven Chu made the historic announcement at Ford headquarters. "By supporting key technologies and sound business plans, we can jump start the production of fuel-efficient vehicles in America," he said.
The loans are part of the Advanced Technology Vehicle Manufacturing Program, which provides incentives to new and established automakers to build more fuel-efficient vehicles, including hybrid and electric vehicles. The ATVMP was created in 2007 and appropriated funding in September 2008. The $25 billion program is supposed to reduce America’s dangerous dependence on foreign oil and create “green collar” jobs.
"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," Chu said. "Ford will transform more than 35,000 jobs into green engineering and manufacturing jobs."
The program is not related to any economic stimulus package or bailout funding that General Motors and Chrysler have received. Although both companies also applied for funding under the ATVM program, they were deemed to not meet financial viability requirements of the program. Chrysler emerged from bankruptcy earlier this month in an alliance with Fiat, while GM is still currently in Chapter 11 creditor protection.
Ford will receive the funds throughout 2011 to retool several factories in Michigan, Ohio, Illinois, Kentucky and Missouri in order to produce 13 models. The firm previously
announced plans to invest $550 million
in retooling its Michigan Assembly plant to produce the all-new Ford Focus and an accompanying battery-electric variant. The Michigan Assembly Plant used to produce Ford's behemoth body-on-frame SUVs: the Ford Expedition and the Lincoln Navigator and is currently being retooled.
"We're changing from a company focused mainly on trucks and SUVs to a company with a balanced product lineup that includes even more high-quality, fuel-efficient small cars, hybrids and all-electric vehicles," said Ford's Mark Fields. "As customers move to more fuel-efficient vehicles, we'll be there with more of the products they really want."
"The transformation of Michigan Assembly Plant embodies the larger transformation under way at Ford," stated Ford President and CEO Alan Mulally. "This is about investing in modern, efficient and flexible American manufacturing. It is about fuel economy and the electrification of vehicles."
The loan is part of a $14 billion investment plan in advanced technology vehicles that Ford wants to implement over the next seven years.
A large portion of funds is expected to go into development of a
battery-electric version of the Ford Focus
. According to Ford, the vehicle will feature an electric motor and a lithium-ion battery pack. The vehicle is being developed in conjunction with Magna International and will go into production in 2011 as a 2012 model year vehicle.
Ford also has plans to market a battery-electric version of its upcoming
Transit Connect commercial vehicle
, a next generation hybrid, and a next generation plug-in hybrid by 2012.
Nissan's North American business unit will receive funds to retool its Smyrna, Tennessee facility to build electric cars. An advanced battery manufacturing plant is also being planned.
"Nissan expects to cut the costs of its batteries in half and ramp up production of 150,000 American-made competitively priced electric vehicles annually," Chu said, in a bid to deflect criticism of government loans to a Japanese company.
Nissan is Japan's third largest automaker. It plans to unveil its
first electric vehicle
model in Japan on August 2, with sales beginning next year. Nissan will sell those cars first in Japan, with US sales after April 2010. Global mass production will come in 2012.
"We are moving forward with zero-emission vehicles," said Nissan CEO Carlos Ghosn at a shareholders' meeting. "The U.S. is going to be a very important market for the company's electric vehicle strategy".
This article is over a month old, voting and posting comments is disabled
RE: One correction...
6/25/2009 9:12:21 AM
Likely just a copy & paste from another site. As a reader, I love to hear contributions from other members to correct facts as all media outlets tend to get a little lazy on the details that could start deadly rumors.
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch
Tesla Motors Approved for $465 Million Loan from US Department of Energy
June 23, 2009, 12:45 PM
Ford Invests $550 Million to Convert Truck Assembly Plant to Build New Focus, Electric Car
May 7, 2009, 9:27 AM
Ford Bringing All-electric Transit Connect Van to U.S.
February 9, 2009, 2:09 PM
Ford Says Yes to Electric, Will Produce Plug-in Focus, Escape
February 3, 2009, 9:17 AM
Nissan Unveils Prototype Electric, Hybrid Vehicles
August 6, 2008, 4:17 PM
Ford Expects Four-Cylinder Engines to Significantly Increase in Popularity
May 21, 2013, 8:56 AM
Toyota Wants to Increase Lithium-Ion Battery Production to 20,000/Year
May 20, 2013, 9:30 PM
Mercedes Aims for 45 MPG Highway on New E250 Bluetec 4Matic Diesel Sedan
May 20, 2013, 8:20 AM
Tesla to Issue More Stock, Pay Off Energy Loans with Proceeds
May 16, 2013, 1:58 PM
NC Becomes Latest State to Threaten Tesla's Direct Sales to Customers
May 14, 2013, 11:33 AM
Consumer Study Shows Buyers Are Embracing Fuel Sipping Vehicles
May 8, 2013, 11:09 AM
Most Popular Articles
High School Student Creates Storage Device that Can Charge in 20 Seconds
May 20, 2013, 6:51 AM
Seawater Cooling Saves Data Center Big Bucks, Energy, Despite Jellyfish Issues
May 17, 2013, 3:23 PM
Newegg Legal Chief: "We don't Feed the Trolls"; Defeats Bell Lab Shell Comp.
May 17, 2013, 10:11 AM
Former Intel CEO Regrets Passing Up on iPhone Gravy Train
May 17, 2013, 11:46 AM
NASA Awards $125,000 Grant for 3D Printed Food on Long-Term Space Travels
May 21, 2013, 1:32 PM
Latest Blog Posts
Lumosity: Does it Work?
May 22, 2013, 8:20 PM
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information