Ford, Nissan, Tesla are approved for green auto government loans

Posted on Tuesday, 23 June 2009 , 18:06:32 byEmil

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Ford, Nissan, Tesla are approved for green auto government loans

The administration of Obama announced Tuesday Nissan, Tesla and Ford will be receiving loans from the Department program of Energy’s Advanced Technology Vehicles Manufacturing. This news is vital for Tesla, because this loan will help starting an assembly plant for construction its electric Model S sedan model.

Tesla was awarded in loans $465 million, which is more than that 300 million Dollars needed supposedly. Ford - $5.9 billion for retooling factories in 5 states producing 13 high-efficiency auto, including the electric ones. Nissan - $1.6 billion for building a new American battery factory and overhaul the Tennessee, Smyrna factory for making electric vehicles.

The loan program is total 25 billion Dollars and there's other applicants — battery makers, related suppliers mostly — vying for pie pieces. 'We have an historic opportunity to help ensure that the next generation of fuel-efficient cars and trucks are made in America' President Barack Obama stated for the Department of Energy. 'These loans — and the additional support we will provide through the Section 136 program — will create good jobs and help the auto industry to meet and even exceed the tough fuel economy standards we’ve set, while helping us to regain our competitive edge in the world market'.

Steven Chu - Energy Secretary said this loan system is important helping 'jumpstart the production of fuel efficient vehicles in America'. The investments 'will come back to our country many times over — by creating new jobs, reducing our dependence on oil, and reducing our greenhouse gas emissions'.