Nissan to Get $1.1 Billion in Low-Interest Loan From U.S. to Develop Green Cars
Nissan is likely to receive a low-interest loan topping $1.1 billion from the U.S. government to encourage the manufacture of alternate-fuel and fuel-efficient vehicles in the country, Kyodo News reported Friday.
Citing "unidentified sources close to the matter," the newspaper said access to the loan will likely hasten Nissan's global production plan for electric vehicles.
If true, Nissan would be the first foreign automaker to get such a loan from the U.S. government, which has set aside $25 billion in loans to automakers to support fuel-economy advances and the building of manufacturing facilities in the U.S. to produce low-emission vehicles.
The money is separate from emergency loans provided to General Motors and Chrysler.
Nissan reportedly plans to introduce its gas-electric hybrid vehicles in Japan and the United States in 2010, and Japan's No. 3 automaker (behind Toyota and Honda) has already decided to manufacture the model at its plant in Yokosuka, Japan.
Nissan had reportedly sought a $1.1 billion loan from the state-backed Development Bank of Japan, in addition to already having borrowed half that amount from the Japanese government.
Nissan has been suffering from the global economic slowdown and recently posted its first annual net loss for a decade.
Scott Doggett, Contributor
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- Scott Doggett May 26, 2009, 9:13 AM
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- Alternative Fuels, Emissions, Fuel Economy, Hybrid, Nissan, Plug-ins and Electric
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- Chrysler, Fuel Efficient Cars, General Motors, Hybrid Vehicles, Hybrids, Japan, Nissan Motor Co., U.S. Department of Energy
"Nissan to Get $1.1 Billion in Low-Interest Loan From U.S."
Let me correct that for you:
"Nissan to Get $1.1 Billion Bailout From U.S."
You're welcome.