Ford Motor Co. (NYSE:F) had the foresight to secure credit when it was still available, keeping it off the dole while rivals Chrysler LLC and General Motors Corp. got government bailout money and went into bankruptcy. And staying out of bankruptcy has kept it eligible for a more dignified form of assistance.
On Tuesday, the U.S. Department of Energy, as part of President Obama's energy plan, doled out $8 billion worth of conditional loan commitments to Ford, Nissan North America Inc. and Tesla Motors for the creation of fuel-efficient vehicles.
Here's a breakdown of the $8 billion allotment -- there's another $17 billion to come -- that has been coveted since it was announced last year:
- $5.9 billion for Ford to transform factories across Illinois, Kentucky, Michigan, Missouri and Ohio to produce 13 more fuel-efficient models;
- $1.6 billion to Nissan to retool its Smyrna, Tenn., factory to build advanced electric automobiles and to build an advanced battery manufacturing facility; and
- $465 million to Silicon Valley startup Tesla Motors to manufacture electric drivetrains and electric vehicles in California.
Ford said in a statement that it will "invest nearly $14 billion in advanced technology vehicles in the next seven years." Coming in 2010 for Ford are the Fusion Hybrid and Mercury Milan Hybrid. Ford said it's in its fifth year producing the world's most fuel-efficient SUV -- the Escape Hybrid.
And beyond the U.S., in 2006, Ford established the European hybrid technologies center in Gothenburg, Sweden, which has responsibility for the application of hybrid systems in Volvo cars globally. Wonder what happens to the center when Volvo is sold?
Ford is expected to receive the
government funds over a period stretching to 2011. -
Baz HiralalSee the DoE announcementSee Ford's response to DoE fundingGo to the story on Ford's plansNissan's Ghosn 'not worried' about selling e-cars
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