Ford Motor Co. (F) and Nissan Motor Co. Ltd. (NSANY) received a combined total of $7.5 billion in U.S. Department of Energy loans Tuesday to help in the development of more fuel-efficient cars and trucks.

U.S. Energy Secretary Steven Chu said his department will now focus on getting money into the hands of parts and battery makers within the next couple months to further spur "green" development.

Discussions have also begun with the newly reorganized Chrysler Group LLC and "technical talks" are ongoing with General Motors Corp. (GMGMQ), which is now undergoing its own bankruptcy reorganization.

"There is money, I wouldn't say set aside for these auto makers, but we are trying to stretch these dollars as far as we can," Chu said in Dearborn, Mich. Tuesday.

The payouts come as the Obama administration attempts to build on some of the momentum coming from the auto industry after the successful reorganization and merger of Chrysler's assets into Fiat SpA (FIATY). The administration helped prepare the way for GM's June 1 bankruptcy filing. GM wants to emerge within the next two months.

Ford, Nissan Ready To Invest

Ford Chief Executive Alan Mulally said he will use the company's $5.9 billion award to upgrade plants in Michigan, Ohio, Illinois, Kentucky and Missouri. Mulally plans to repay the loans by 2012.

Ford wants to introduce several battery-electric vehicles including a battery-electric vehicle van in 2010 for commercial use, a small battery-electric sedan developed with Magna International Inc. (MGA) by 2011 and a plug-in hybrid vehicle by 2012.

Nissan will get $1.6 billion to invest in its Smyrna, Tenn., facility to build electric cars and an advanced battery manufacturing plant. The plants will have the capacity to build 150,000 zero-emissions vehicles a year and an annual capacity of 200,000 batteries.

The additional capacity could result in the creation of about 1,000 new jobs.

Construction at Smyrna is scheduled to begin by the end of this year, after an environmental assessment is completed, the company said in a statement. Production is planned to start in late 2012.

Nissan will offer electric vehicles in the U.S. and Japan beginning in 2010. The first vehicles for the U.S. market will be built in Japan before production is shifted to Smyrna.

Tesla To Get $465 Million

Secretary Chu also confirmed that Tesla Motors, based in San Carlos, Calif., will receive $465 million to accelerate the production of affordable, fuel-efficient electric vehicles.

Tesla said it will use $365 million for production engineering and assembly of the Model S, an all-electric family sedan that carries seven people and travels up to 300 miles per charge.

The company will use the remaining funds for a powertrain manufacturing plant. The facility will supply all-electric powertrain products to other auto makers and employ about 650 people. The company is looking for a site in California.

Congress approved the creation of a $25 billion fund in 2008 to help car companies and suppliers develop green vehicles and components. Auto manufacturers must meet new fuel-efficiency standards of at least 35 miles per gallon by 2020, a 40% increase over current standards.

-By Jeff Bennett, Dow Jones Newswires; 248-204-5542; Jeff.bennett@dowjones.com