Ford, Nissan and Tesla to Get Green Government Loans

Obama_and_steven_chu The Energy Department will loan money from a $25 billion retooling fund to Ford, Nissan and Tesla. The money is meant to help the automakers develop and produce cutting-edge green vehicles.

Energy Secretary Steven Chu will eventually decide how much each company will receive, but Ford has applied for $5 billion in loans by 2011, while Tesla wants $450 million. Nissan has announced it has been approved for a $1.6 billion loan.

Ford plans to invest $14 billion over seven years in developing advanced technologies, and will use the government loan to finance that effort.

Ford has said it will bring a battery-electric van to the market by 2010, a small electric sedan by 2011 and a plug-in electric vehicle by 2012. We previously reported on how Ford plans to convert a truck plant to build the electric Focus and what that will mean to Ford’s lineup.

Meanwhile, Nissan will use its $1.6 billion loan to modify its manufacturing plant in Smyrna, Tenn., to produce zero-emission electric cars and lithium-ion battery packs. Nissan plans to begin production of that unnamed vehicle in 2012.

Tesla will use $350 million of its request to build an assembly plant for its Model S sedan, which it wants to bring to market by 2011. $100 million will also be used to finance an advanced battery- and powertrain-manufacturing facility.

Due to their bankruptcies, GM and Chrysler could not be approved for loans, but the pot of money set aside by Congress totals $25 billion, and it’s very possible that those restructured companies will be granted money in the next round of loans.

AP Source: Ford, Nissan, Tesla to Get Government Loans (USA Today)

Comments 

Booby J

Ok, everyone puts in claim, as US Taxpayers have unlimited funds. So, in say a year, the whole $33 billion will be gone, GM will not have built a new car. So everyone but the Treasury will have been paid, at this time, GM will file for a REAL bankruptcy. Case Closed. We citizens loose billions, .GM gone, Please let GM go into real bankruptcy NOW, so GM has a chance to start fresh! PLEASE stop all this illegal fraud and payback. Lots of new workers need jobs, the lazy UAW at $70/hr could be replaced with these new willing workers, a great savings to a bankrupt company.

Dave Wuss

Welcome to Obamanomics where everyone gets a hand-out and the government only speaks of jobs saved not jobs created. I feel really sorry for those that are unemployed as this President (for which I voted for) has little to no concept about job creation.

Vik

Booby J- if you would, please explain to us in detail the difference between GM's recent chapter 11 filing and your definition of "real bankruptcy". Also, I take it you are not aware of the UAW's salary concessions, how much of that $70/hr you reference is legacy healthcare costs, and how UAW's stake in the company will be used to help pay for it? Oh, why bother a ditto-head with facts when Rush's talking points are so much easier to memorize! :)

JM

thank you Comerade Obama, i am sure that i will love paying off this for the next 30 years.

Comerade Obama, are you listening? hello? i dont want to have to pay off all of these loans, and i am sure noone else wants to either. in fact, why dont we all just stop paying off our loans, as Comerade Obama will save us! paying off your own loan is immoral, and letting the government give you and everyone money is the new blissful Sociamerica.

Happymantis

Jeez, to the nitwits who are starting to bumble on about Obamanomics and whatever bs the impotent GOP has conjured to anger their flock... what part of a LOAN isn't understandable, as in, the companies will have to pay back the government with interest?

JM

Happymantis-

there is no timetable for the loan to be repayed, and that money has to come from somewhere. plus, do you really think that the American people are going to get checks in the mail from the government for letting them use our money? no, they arent.

besides, its the principal of the thing. the governemnt should not be getting this involved with the economy, much less giving loans to and ones that dont even need them!

Bloke

What's the problem JM, you think the only way the government could get their money is if there was a timetable?

You would rather have the government do nothing and just let this country sink into deeper economic despair?

Dave Wuss

The weak-kneed are always easy to spot as their lives are driven by fear. And to the putz who assumes that anyone who offers up criticism about our President must be a Republican. Here's a clue, I haven't voted Republican ever in my life but am not afraid of my shadow like you.

JM

Bloke-

actually, yes, i would have the government do nothing. capitalism is driven by firms entering and leaving the market. if the government artificially sustains firms that should be leaving the market, then they have not only messed up the balance in the economy, but they have ensured that they will be giving the same firms more assistance down the road. also, the firms that are going bankrupt, such as GM and Chrysler, should be leaving the market because of the products they have been attempting to sell the American people for decades. GM and Chrysler have not produced truly competitive vehicles (save a select few from the past 2 years) in decades when compared to those from Europe and Asia. therefore, the American people have shied away from the companies, and they have lost money, and as a result should declare bankruptcy and leave the market. GM and Chrysler leaving the market also allows new firms, with potentially much better products, to enter and perhaps take up much of the market that GM and Chrysler once had.

So all of this artificial sustainability that Comrade Obama has put into place is screwing with the economy more than doing nothing ever would. Plus, i wholeheartedly doubt that this country would "sink into deeper economic despair." its not the governments job to bailout firms that should go bankrupt. its not the government's job to bailout those that decided to take out subprime mortgages and buy a home they couldn't afford. its not the government's job to tell me that its my job now to pay off my neighbor's mortgage. its not the government's job to punish me because i was fiscally intelligent and bought a house and cars that i could truly afford. its not the government's job to take away my money and give it to people that dont deserve it, just because i fit into a certain bracket because i actually worked hard and applied myself and took risks that allowed me to be where i am today.

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Bloke

JM, you think Obama is the first to actually interfere with the economy? You think we actually had pure capitalism before he was in office? Come on, there is no such thing as pure anything when it comes to economic models. Keep pulling the socialism card because your guy lost, but that's cool.

You don't think the economy could get any worse? Where do you think all those new companies would come from without any capital being lent by banks? Please man, you've got nothing.

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