The first conditional loan commitments reached as part of the Department of Energy’s Advanced Technology Vehicles Manufacturing programme has been awarded by the Obama administration.
The Ford Motor Company will benefit from $5.9billion, Nissan North America will pick up $1.6billion and Tesla Motors has been awarded $465million.
Ford’s award will help finance a number of engineering advances to traditional internal combustion engines and electrified vehicles. It will also help the manufacturer convert two plants from truck production to car production. Ford has committed to raising the fuel efficiency of more than 12 models including the likes of the Ford Focus and Ford Escape.
Nissan meanwhile, has received money to produce electric cars and battery packs at its manufacturing facility in Tennessee. These fully electric cars are the first produced in the USA by a major manufacturer.
Finally Tesla Motors picks up its money in two parts – the first to finance a manufacturing facility for the Tesla Model S electric car and secondly to support a facility that will manufacture battery packs and electric drives.
The Advanced Technology Vehicles Manufacturing Loan Programme is expected to provide about $25 billion in loans to companies making cars and components in US factories. However, these cars and components must increase fuel economy by at least 25% above 2005 fuel economy levels
