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Fuel-efficient vehicles get jolt from U.S. government
DEARBORN, Mich. (AP) — Cultivating the next generation of fuel-efficient vehicles, the Obama administration said Tuesday it would lend $5.9 billion to Ford Motor Co. and about $2.1 billion to Nissan Motor Co. and Tesla Motors Inc. in a government-industry partnership to build green cars.
Energy Secretary Steven Chu said the three automakers would be the first beneficiaries of a $25 billion fund to develop fuel-efficient vehicles. The loans to Ford will help the company upgrade factories in Illinois, Kentucky, Michigan, Missouri and Ohio to produce 13 fuel-efficient vehicles.
Nissan will receive loans of $1.6 billion to retool its plant in Smyrna, Tenn., to build electric vehicles and construct a battery manufacturing plant. Tesla will get $465 million in loans to build electric vehicles and electric-drive powertrains in California.
The loans were designed to help auto manufacturers meet new fuel-efficiency standards of at least 35 mpg by 2020, a 40 percent increase over current standards.
“These loans will help the auto industry meet and even exceed the president’s tough fuel standards,” Chu said at Ford’s Research and Innovation Center. “This means the most fuel-efficient cars in the world must be made right here in America.”
Dozens of auto companies, suppliers and battery makers have requested $38 billion from the loan program, which was created last year to give car companies and suppliers low-interest loans to retool their facilities for green vehicles and components such as advanced batteries.
Ford had been seeking about $5 billion in loans by 2011 and a total of $11 billion from the program to invest $14 billion in advanced technologies over the next seven years.
The loans will help Ford convert two truck plants to produce cars and help the company raise the fuel efficiency of nearly 2 million new vehicles a year. The government said it will help Ford transform nearly 35,000 jobs into “green” engineering and manufacturing jobs.
Ford has said it intends to bring several battery-electric vehicles to market starting next year, with a plug-in hybrid vehicle coming by 2012.
Ford expects to begin repaying the loans in 2012, with an interest rate based on the current U.S. Treasury rate hovering between 3 percent and 4 percent, said Ford spokesman Mike Moran. The company would have faced much higher interest rates from private lenders.
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Comments
Let me get this straight, our goverment is going to give Nissan 1.6 billion to build fuel-efficiency so they can take more jobs away from AMERICAN workers. I bet there are no strings attach, no firing of their CEO ,no pay back, etc. Yeah ,give our tax dollars to foreign companies so they can undercut our own. Good job Congress
That's Nissan of North America. The last time I checked Smyrna, Tenn. was in the United States.
It's still a foreign company working in the USA. Where is their loyalty? Don't you think that they will past the technologies onto their own country.
Hopefully any technologies that makes cars more efficient will be used world wide. We are LENDING money to a company that set up business in America and is putting Americans to work. How can you have a problem with that.
The article states that the money is not given but LOANED and jobs will be created in the United States. Somehow you read that the government is giving money to a company to "take jobs from American workers".
You might want to read the article a few times before you comment.
Ohio is pioneering the use of fuel efficent vehicles for state use.
http://i44.tinypic.com/2dryiac.jpg
It's a foreign company who's government pays all the health care and retirement for all their workers in their country , just as most foreign companies get . So if you think that is a level playing field then I have a bridge out in San Francisco to sell you and some wood nickels . But if you are happy to give your money to them ,I guess that is your right.
But I do not think we should be helping foreign companies that uses subsidized labor at the best and slave labor at the worst in their country were they make most of their products and cut that into their price.
Read the article and stop replacing the word LEND with the word GIVE. Nissan has been selling cars in this country and world wide for decades and will continue to do so. Would you rather they build cars overseas and import them or build factories in the United States and use Americans and build them here?
As far as Nissan using slave labor. I hadn't heard that or is that something you got from reading the article? Maybe we should tell Nissan and Honda and Toyota and Volkswagen and Mercedes and every other foreign company that's here in the United States to take those factories and jobs back to their own countries. Unbelievable.
I THINK YOU MAY BE OFF YOU MED'S ON THIS ONE . BUT YOU HAVE EVERY RIGHT TO WHAT YOU BELIEVE. AND YES I HAVE BEEN IN MOST OF THE PLANTS IN THE OTHER COUNTRIES AND HAVE SEEN IT WITH MY OWN EYES . THE POINT YOU SEEN TO MISS OR WISH TO OVERLOOK IS THAT THEY USE VERY SUBSIDIZED LABOR IN THEIR OWN COUNTRY TO KEEP THE PRICE DOWN HERE . BUT IF THAT IS OK WITH YOU OK . SORRY ABOUT THE CAPS
cambridge, I agree with everything you have said but you know as well as I do that the UAW crowd is not going to buy it no matter what. They also do not have a problem with the fact that the big three were building plants in Mexico and Canada during the same time that Nissan, Honda, Toyota and others were building plants in this country. If they are going to condemn one group then condemn the other also. One of these groups was providing American jobs in not only the factories but in supplier plants. Oh, that's right, they were not UAW jobs. How silly of me.
The UAW has nothing to do with this. It's about a company investing in America and providing jobs for Americans. The article doesn't need any translation, words replaced or speculation.
Look at the scenario for how it will go down. The government LENDS money to Nissan. Nissan needs to build plants in Tennessee and California. They need to buy land. Realtors, Title Companies, Banks, Lawyers get a payday. Architects and engineers design the construction project and building fees are paid. American construction companies and American construction workers build the factories. Americans are hired to work in the plants. Nissan develops technology that will eventually end being used by every car company including American. Nissan pays back the LOAN and pays taxes in America just like every other company that does business in this country.
Only on this board would people look at this as a negative situation or try to justify it as such by making up scenarios that don't exist. Hasn't been the first time and I doubt it will be the last.
I was referring to what the UAW take will be on the Nissan and Tesla portion of this. And yes, they will not like the fact that their Messiah would do this. Let's just wait and see what the opinion will be. They may be able to stay quiet but I would not bet on it.
My point is that these are not UAW jobs so it will be looked at by the UAW old timers mentality as helping foreign companies PERIOD. If Nissan, Honda etc. were UAW plants it would be "more acceptable" to some.
Also all the other work created just to get the plants up and running will not be considered by many.
Will I see the HATE machine is out in force and there is no reasoning with them just can not see past your nose . Just blinded by hate
I couldn't agree more with Cambridge.
I sell software to manufacturing companies throughout the midwest. I see strong companies and weak ones. I was at two very big automotive suppliers in Ohio that are GROWING. One employs almost 1000 workers at their plant near Columbus and another employs > 200 at a plant near Andover. The first company (which is Japanese owned) makes headlights and taillights for Honda and Nissan for plants IN the US. Both of these companies employ US workers to make parts that go to other US plants employing US workers.
We are (LOANING) money to a foreign company that puts high tariff on all our cars sold in their country .Tariff that add $10,000 to the value of any car sent there.If we (loan) them the money at least make it FAIR with our cars entering that country
HEY casper did you not read that those are American companies that do nothing but good for us . What is a matter with you , all the enlighten ones have told you this so back off .
casper77....I have pointed out several times the issue of tariffs on our products. We should do the same when those same countries try to sell in America.
These are two different issues. It's apples and potatoes. There is no down side to this situation for all the reasons listed in my last post. joat...took it further and pointed out that those companies will use American companies as suppliers which create even more American jobs. All of those employed pay taxes and spend that money in their community.
This is a perfect example of Obama stimulating the economy. When that loan is paid back the American tax payer will get the benefits of taxes paid by that new employer all those new jobs and the ripple effect in the communities. Why would you be against a company coming to America and putting Americans to work?
It's just no use , you will never understand so there is no use to keep this stupid conversation going on.
How many US car factories are in Japan? How much Money does Japan and China give to us to help OUR car markers? ZERO All I"m saying is I don't cares if we loan them money as long as they have Fair Trade with us
casper77....I don't want other countries to give American companies an incentive to open factories and hire foreign workers. I want American companies to expand their business in America and I want any company from anywhere in the world to open factories in America and put Americans to work. I think it's better for them to have a factory here than to import from their country. Just my opinion.
Fuel efficient vehicles are a win/win for our environment, fuel economy and Ohio jobs! I hope the technology is worth it! I think we all know ethanol is worthless in large scale. I hope we see some more battery, solar and hydrogen options!
Remember GM and Chrysler are labeled as an American company but they have plenty of interests overseas and the Government gave them Billions. It's all so wrong to take our money and bailout big business. But we’re told it for our own good. Let’s put that money into cleaning up our neighborhoods so little old ladies don’t get car jacked by 17 year old punks.
This isn't new ! They have been in bed with Ford since the late 80's. Go look at the Sheffield,Oh plant in Loraine Cty. I know because I worked there when it was being built.At least if this works we'll be able to see the sun from the bottom of the ocean.We all know what's at the bottom .Whale s it.
A job is a job!! sounds like casper is a bitter gm guy who dont like the taste of his meds.....let your mind wonder past your pay check....the usa consists of 50 states its not the worlds problem that gm was run by dummies I hope they bring a good car to the vally.............1day
Maybe all of the elected Hagans can get together and change their mantra from :"Health Care, Education and Social Security....to Fuel Efficiency!