Obama Awards $8 Billion in Loans for Advanced Automotive Technologies
July 1, 2009
WASHINGTON, DC-The Obama Administration announced $8 billion in conditional loan commitments for the development of innovative, advanced vehicle technologies on June 23. The loan commitments include $5.9 billion for Ford Motor Co. to transform factories across Illinois, Kentucky, Michigan, Missouri and Ohio to produce 13 more fuel efficient models; $1.6 billion to Nissan North America Inc. to retool its Smyrna, TN, factory to build advanced electric automobiles and an advanced battery manufacturing facility; and $465 million to Tesla Motors to manufacture electric drive trains and electric vehicles in California.
These are the first conditional loan commitments reached as part of the Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing program. The Department plans to make additional loans under this program during the next several months to large and small auto manufacturers and parts suppliers up and down the production chain.
“We have an historic opportunity to help ensure that the next generation of fuel-efficient cars and trucks are made in America,” said President Obama. "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."