Ford, Nissan, Tesla to receive government loans

Money offered from $25 billion fund to help develop fuel-efficient vehicles

NEW YORK – The Energy Department is expected to announce Tuesday it is lending money to the Ford Motor Co. and two other automakers from a $25 billion fund to develop fuel-efficient vehicles.

Energy Secretary Steven Chu was scheduled to announce the loan funding for Ford, Nissan Motor Co. and Tesla Motors Inc. in Dearborn, Mich., congressional officials said. They requested anonymity because an official announcement was pending.

Dozens of auto companies, suppliers and battery makers have sought a total of $38 billion from the loan program. Ford has asked to receive $5 billion in loans by 2011, but it was unclear how much money the automaker would receive. Nissan has applied for an undisclosed amount of assistance, while Tesla has sought $450 million.
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The Energy Department declined to comment on the plans. Chu has not yet announced the first recipients of the loans, which have been closely watched by members of Congress from states with auto plants and suppliers.

AP