2nd UPDATE: Ford, Nissan To Get $7.5 Billion In Dept Of Energy Loans
23 Juni 2009 - 8:46PM
Dow Jones News
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