Feds Reported Ready to Grant Advanced Technology Loans to Ford, Nissan, Tesla

Ford, Nissan and upstart electric car maker Tesla Motors will be the first auto companies to receive factory retooling loans under the $25 billion federal program to speed production of fuel-efficient vehicles in the U.S., the Detroit Free Press reported late Monday.

The awards from the Advanced Technology Vehicles Manufacturing loan program are to be announced this morning in Dearborn, Mich., Ford's hometown, by Energy Secretary Steven Chu.

Ford, which had applied for $11 billion in loans under the program, is likely to receive the largest loan. The company wants to retool an SUV factory to use for a new electric vehicle it plans to launch in 2011.

Nissan has asked for $1.1 billion to help retool its Smyrna, Tenn. plant to build electric vehicles that it has said will go on sale in selected areas of the U.S. next year.

Tesla has asked for $350 million to refurbish a Southern California factory, believed to be a recently emptied aerospace plant, for production of its upcoming Model S electric sedan.

General Motors corp. and Chrysler are not eligible for loans from the program until they emerge from their Chapter 11 bankruptcy proceedings. The loan program is only open to companies that can show they are "financially viable."  

In all, 75 companies have asked for $38 billion in loans from the program, exceeding the available funds by 52 percent.  A proposal to double the loan pool to $50 billion is pending in Congress.

Posted by

John O'Dell June 23, 2009, 1:04 AM

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Chrysler, Ford, Fuel Economy, General Motors, Hybrid, Nissan, Plug-ins and Electric, Tesla

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Advanced Technology Vehicles Manufacturing Loan Progra, Electric Vehicles