Reports surfacing that Ford, Nissan to tap U.S. factory retool loans

The Energy Department is beginning to lend money from a $25 billion loan program to develop fuel-efficient cars. Ford Motor Company, Nissan Motor Company and Tesla Motors are slated to get the first round of loans. U.S. Energy Secretary Steven Chu is planning an announcement today in Michigan, the paper said, citing government officials familiar with the matter to help auto makers retool factories for advanced-technology vehicles, the Wall Street Journal reported today.

Reports are saying that Nissan expects its electric vehicle output in the United States to have an initial capacity of more than 100,000 vehicles a year. Nissan had chosen a site in Tennessee to make electric vehicles and batteries, Carlos Ghosn, CEO of Nissan and French partner.

Ford will receive $440 million to help convert a Michigan sports-utility factory to build small cars. Ford Motor Co is launching a revamped Taurus this summer, a big bet by Chief Executive Alan Mulally that he can revive an ailing model that once defined the American family sedan.

Earlier this year, Tesla was pinning its hopes on Washington and a $450 million Energy Department government loan. Tesla Motors was founded in 2003 as Silicon Valley’s solution to the nation’s energy problem. If a struggling Detroit could not make an electric vehicle, then a Silicon Valley start-up would.

General Motors and Chrysler do not qualify for receiving aid under terms of the loan program.

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