Jun23
Obama to give $25 billion more in loans to the automakers
DETROIT (Reuters) -- Ford Motor Co. will receive a share of $25 billion in government loans designed to help automakers retool factories for making fuel-efficient cars, according to sources familiar with the decision by the Obama administration. Energy Secretary Steven Chu will make the announcement today at an event at Ford headquarters in suburban Detroit, the sources said. Government and industry sources confirmed that Ford had qualified for the first tranche of financing, approved last year by Congress and the Bush administration. The amount was not disclosed, but Ford had sought billions in its application, sources have said. 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. It had been long expected that Ford would be approved for assistance. General Motors and Chrysler Group LLC applied for funding as well, but government officials have said any decisions on their bids would have to wait until their finances improve. Chrysler emerged from bankruptcy earlier this month and is operating under an alliance with Italy's Fiat S.p.A. GM is currently in bankruptcy. Both GM and Chrysler have received billions in federal bailout money since January. The retooling money is only available to viable companies. Ford has not asked for bailout assistance. The government also plans to disclose that startup Tesla Motors Inc. and Nissan Motor Co. will be among the beneficiaries of the program created by Congress in 2007 to help automakers retool factories for advanced-technology vehicles, the Wall Street Journal reported today. Nissan said it expects its electric vehicle output in the United States to have an initial capacity of more than 100,000 vehicles a year. Nissan had chosen a site in Tennessee to make electric vehicles and batteries, Carlos Ghosn, CEO of Nissan and French partner Renault, told reporters after Nissan' annual shareholders' meeting earlier today in Japan.
SOURCE: [ Automotive News ]
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