Ford, Nissan and Tesla tap U.S. retooling-loan program

Ford Motor Co., Nissan Motor Co. and Tesla Motors Inc. will be among the first beneficiaries of a $25 billion government loan program to help car makers revamp their U.S. factories to produce advanced-technology vehicles, Energy Secretary Steven Chu said Tuesday at a Ford facility in Michigan. The loans are designed to help car makers retool plants to produce new models that are at least 25% more fuel-efficient than vehicles made in 2005. Ford hasn’t detailed exactly how it intends to use its $5.9 billion loan. But company officials have said the auto maker is interested in using the loans to help it retool some of its North American truck and sport-utility vehicle plants so they can make small cars. The money is expected to help the Japanese company upgrade its Smyrna, Tenn., assembly plant to make electric cars, and build a new facility for battery production for these vehicles. Tesla, meantime, will receive $465 million in loans to finance production of an electric-powered family sedan and make electric-vehicle components. A spokesman for XP Vehicles said its application for financing is “moving along” and it hopes to hear on its application “within weeks if not tomorrow.” (June 24, 2009)