Ford, Nissan and Tesla to receive U.S. DOE loans

Posted: Jun 23, 2009
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The Department of Energy is expected to lend money to FoMoCo, Nissan Motor Co. and Tesla Motors Inc. from a $25 billion fund to develop environmentally-friendly cars. Sources said today that Energy Secretary Steven Chu is scheduled to announce the loan funding for the three automakers.

Ford has asked to receive a total of $5 billion by 2011. The American automaker recently invested a total of $550 million to convert its Michigan Assembly plant from a large SUV factory to small-car plant. In 2011, the plant will also build the battery-electric version of the Focus, the company”s first all-electric passenger car.

Nissan, who has applied for an undisclosed amount, was recently reported to be preparing its Smyrna, Tennessee plant for the production of advanced lithium-ion batteries and electric vehicles. Nissan plans to mass-produce electric vehicles by 2012.

Tesla Motors is seeking a total of $450 million to help kick off production of its Tesla Model S electric-sedan by 2011. Tesla’s Model S sedan will cost around $49,900.

General Motors had requested $10.3 billion from the DOE loans, while Chrysler had asked for $6 billion. However, energy officials said that the loans could only be provided to “financially viable” companies.

- By: Omar Rana

Source: MSNBC


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  • Jordan

    Taxpayers do not have unlimited funds — but the government continues to spend money like it's their own pocket book.

    When capitalism's business cycle veers into discomfort (unemployment, slowing sales and borrowing, etc.) — the State (government) now suppresses recession with monetary policy (making money cheap and abundant) and fiscal policy (quantitative easing, injections of liquidity, stimulus programs, etc.) so nobody feels pain. But the problems are still there, just hidden for a time by the bailouts. They will continue to grow until another bailout is needed (e.g. Chrysler).

    Capitalists and those that embrace the free market reject this narrow notion for many reasons. Chief among them is that fact that experience and progress is the byproduct as we surmount difficulty. The Marines say, pain is weakness leaving the body. These downturns are inefficiencies leaving the system. These loans will be used to prop up inefficient systems. Nobody truly learns. Nobody truly grows. Nobody progresses.

    –

    Stop the paronioa: You do not need to boycott car manufactures that accept bailouts. Capitalism thrives when you make a decision that fits you. You should find the car that you want — and that meet the criteria important to you. Car manufacturers that accept bailout money will be required to add inefficiencies to their business model and are at a disadvantage to produce the car that meets your needs the best. You should make car manufacturers and dealers compete for your business.

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