Advanced technology auto loans awarded to Ford, Nissan and Tesla

Nearly $6 billion for Ford factories across Illinois, Kentucky, Michigan, Missouri and Ohio

The loan commitments announced today include $5.9 billion for Ford to transform factories across Illinois, Kentucky, Michigan, Missouri, and Ohio to produce 13 more fuel efficient models.

Nissan's Smyrna, Tennessee factory

$1.6 billion for Nissan to retool their Smyrna, Tennessee factory to build advanced electric automobiles and to build an advanced battery manufacturing facility

Tesla Motors, California

$465 million to Tesla Motors to manufacture electric drive trains and electric vehicles in California.

These are the first conditional loan commitments reached as part of the DoE’s Advanced Technology Vehicles Manufacturing program. The DoE plans to make additional loans under this program over the next several months to large and small auto manufacturers and parts suppliers up and down the production chain.

"We have an historic opportunity to help ensure that the next generation of fuel-efficient cars and trucks are made in America," said President Barack Obama, in a statement released announcing the program.

In the same statement, Energy Secretary Steven Chu said. "These investments will come back to our country many times over – by creating new jobs, reducing our dependence on oil, and reducing our greenhouse gas emissions."

The Advanced Technology Vehicles Manufacturing Loan Program was first appropriated in the fall of 2008, the program expects provide about $25 billion in loans to companies making cars and components in US factories that increase fuel economy at least 25 percent above 2005 fuel economy levels.

Ford

Ford will receive the $5.9 billion in loans through 2011 to help finance numerous engineering advances to traditional internal combustion engines and electrified vehicles. In addition, theses loans will help the company convert two truck plants to the production of cars.

Ford expects to raise the fuel efficiency of more than a dozen models, including the Focus, Escape, Taurus and F-150, representing close to two million new vehicles annually and expects to transform nearly 35,000 employees to green engineering and manufacturing jobs.

According to Ford, the facilities that will be impacted by today’s announcement include: Chicago Assembly, Louisville Assembly, Dearborn Assembly, Dearborn Engine, Livonia Transmission, Michigan Assembly, Van Dyke Transmission, Kansas City Assembly, Cleveland Engine, Lima Engine, and Sharonville Transmission.

Nissan

Nissan will receive $1.6 billion to produce electric cars and battery packs at its manufacturing complex in Smyrna, Tennessee. The loan is expected to aid in the construction of a new battery plant and modifications to the existing assembly facility. Nissan anticipates the project may result in an increase of up to 1,300 jobs in Smyrna when full production is reached.

Tesla

Tesla Motors will receive $465 million that will advance electric vehicles. The first loan will finance a manufacturing facility for the Tesla Model S sedan. Production of the Model S is expected to begin in 2011 and ramp up to 20,000 vehicles per year by the end of 2013. This integrated facility expects to create 1,000 jobs in Southern California.

The second part of the loan will support a facility to manufacture battery packs and electric drive trains to be used in Teslas and in vehicles built by other automakers, including the Smart For Two city car by Daimler. Early pilot battery pack production is expected to begin in 2011, reaching about 10,000 by 2012 and 30,000 packs in 2013. The new facility expects to employ 650 people in the Bay area of Northern California.