Ford will receive $5.9 Billion in low interest loans from the US Govt Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP). The funding will go towards transforming factories in Illinois, Kentucky, Michigan, Missouri and Ohio to produce 13 more fuel efficient models. Tesla ($465 million) and Nissan ($1.6 billion) were also approved to receive some of the low-interest loans.
From the DOE press release:
Ford Motor Company will receive $5.9 billion in loans through 2011 to help finance numerous engineering advances to traditional internal combustion engines and electrified vehicles. In addition, theses loans will help the company convert two truck plants to the production of cars. Ford will be raising the fuel efficiency of more than a dozen popular models, including the Focus, Escape, Taurus and F-150, representing close to two million new vehicles annually and helping to transform nearly 35,000 employees to green engineering and manufacturing jobs in factories across 5 states: Illinois, Kentucky, Michigan, Missouri, and Ohio. Ford is driving a major upgrade, leveraging a portfolio of technologies, including the direct injection, smart turbocharging EcoBoost engine, advanced transmissions, and new hybrid technologies.
The facilities that will be impacted by today’s announcement include: Chicago Assembly, Louisville Assembly, Dearborn Assembly, Dearborn Engine, Livonia Transmission, Michigan Assembly, Van Dyke Transmission, Kansas City Assembly, Cleveland Engine, Lima Engine, and Sharonville Transmission.
GM and Chrysler were told their finances have to improve before they can receive any loans from the government's program to loan billions to retool factories in order to make more fuel efficient vehicles. The program was set up by Bush before the TARP program began.
The car companies at the time wanted the loan program, but said the funds would not be available in time to help them survive. Thus, the loans that GM and Chrysler eventually took which allowed them to survive for a few months more before going into bankruptcy.
Ford President and CEO Alan Mulally released this statement on the government loan program:
"Ford Motor Company is proud to be among the first automakers deemed by the government to be among the best companies with the best technologies in American manufacturing and fuel efficiency. This green partnership between Ford and the U.S. government will help accelerate the development of advanced technologies for even better fuel efficiency and emissions. Ford is absolutely committed to fuel economy leadership with every new model we introduce. In fact, we plan to invest nearly $14 billion in advanced technology vehicles in the next seven years. Our partnership with the Department of Energy also will help retool our U.S. plants more quickly to produce fuel efficient vehicles and help meet the new, rigorous fuel-economy requirements."
Ford anticiaptes they will begin repaying the loans back in 2012
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