autoevolution
 

Ford, Nissan, Tesla to Get $8bn US Loan

Ford, Nissan and Tesla Motors are expected to receive a $8 billion loan from a $25m fund the United States government, in an attempt to support the automakers continue their efforts in the green cars sector. The Energy Department refused to comment on the plans but, according to a report by the Wall Street Journal, an official announcement is expected to be issued today. Ford, Nissan and Tesla Motors refused to comment as well.

It seems like Ford was seeking up to $5 billion in loans by 2011 while Tesla Motors demanded $450 million. Nissan also requested support from the US government, but the amount is still undisclosed. Nevertheless, it's still unknown how much money every automaker is to receive.

Nissan earlier this week announced that it intends to build electric cars in the United States so a government funding package would pretty much makes sense. Nissan spokesman Fred Standish only stated the US arm of the Japanese automakers hopes “to be approved for this loan as we provided a very strong business proposal. At this time, we have nothing further to say or to announce.”

What's interesting is that Ford is also looking to receive government support, in spite of CEO Alan Mulally's statements that the American automaker does not need financial assistance. Ford is the only member of the Detroit Three that stayed on the safe side and avoided bankruptcy without a cent sourced from the government.

"We don't want to borrow any more money. We have sufficient liquidity to fund our transformation plan, which means our business is in a relatively good shape," Mulally said according to CNN in January. "Right now, I think with everything planned in the fiscal and monetary policy, I am very comfortable that we are going to start to turn things around through the second half of the year.”
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories