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