Green-car loans awarded to Ford, Nissan, Tesla
Nissan demonstrates a viable electric power train in this test mule.
(Credit: Antuan Goodwin/CNET)Updated at 11:35 a.m. Tuesday with further loan details.
The U.S. government, which plans to kick-start development of a new generation of fuel-efficient automobiles through the Advanced Technology Vehicles Manufacturing Loan Program, announced on Tuesday some loan application winners.
Ford Motor gets loans totaling $5.9 billion, going to a variety of fuel efficiency initiatives, while a $1.6 billion loan to Nissan is intended to help it refit a Tennessee plant for electric car production.
Tesla Motors is also a winner under the program, getting a $465 million loan, most of which will be used to build production facilities for the recently announced Model S electric sedan.
The $25 billion Advanced Technology program has been in discussion for some time, and automakers have been lining up to get loans under the program. A stipulation that only viable companies can get loans under the program caused General Motors and Chrysler's applications to be turned down, though both companies have developed hybrid and electric-car platforms.
Ford announced plans earlier this year to release an electric vehicle in 2011, co-developed with parts supplier Magna Steyr. The company will use its loans to produce that vehicle, along with a commercial electric vehicle based on its Transit model in 2010.
Nissan has been one of the leaders among the major automakers in advancing a pure electric car, promising to make one powered by a lithium ion battery pack on U.S. roads in 2010.
As a technology demonstration, Nissan has shown its EV-02 test mule to journalists, an electric car using the Nissan Cube platform, getting a range of about 100 miles. The company is designing its Tennessee plant to produce 150,000 electric cars per year, and associated battery manufacturing will produce 200,000 lithium ion packs per year. The plant is slated to begin production in 2012.
Other aspiring automakers still await a decision. One such applicant, Indiana-based Bright Automotive, plans to build a commercial plug-in hybrid electric vehicle for fleet use. The company has received no word or time line on its application.
There are either two things at work here, either, 1) this is a viable loan, in which case, the government just swooped in and took business from banks, and now hurting the very banks that they are also propping up.
or 2) these are not viable loans, in which case, why present them to the taxpayer as such.
The problem here is that George Bush didn't believe in anything...given that, why should Obama.
You are probably right about Tesla applying for that amount though. I wasn't really thinking about this being a loan situation. when I asked.
Given Tesla is a new company with no manufactoring facilities it would make more sense for them to move to a far cheaper location say china, where labour markets are far cheaper.
Plus tje credits market why they are finally unfrozen the cost of credit is far higher than even a year ago, given the Obarma promise of creating more jobs speeding up these projects is project is vital.
Through I am surprise Tesla did not apply for more money to developed a cheap electric car.
Creating an artificial economy for products by underwriting it with cheap government loans will not change customer sentiment. A compelling product will do that and honestly we are just starting to see compelling products in this area instead of the tin cans filled with batteries that have been the norm.
Point being, there's plenty of people out there that would love and could use an all-electric vehicle. However, the cost of doing so is prohibitive at this point. Loan programs allow reductions in pricing so that demand can be created sooner. Given enough "real" demand, economies of scale kick in, driving down the price of the product to the point that subsidies become unnecessary.
It's sorta like what will most likely be required to switch to alternative fuel sources like hydrogen. The government can be there to facilitate getting around the chicken/egg problem.
That is the whole point. If electric vehicles continue to cost 2-3 times a fossil fuel solution, then they are not viable alternative, no matter how much money you throw at it. Saying that the only reason that EV (and other alternative solutions) haven't gained acceptance is because the market just needs a jumpstart is foolishness.
I'm sure there are plenty of people out there that want flying cars as well, but the technology is still very expensive and specialized. Should the government underwrite that market as well?
+ http://wheels.blogs.nytimes.com/2009/05/12/fight-for-hydrogen-funding/
+ http://www.hydrogenassociation.org/media/pressReleases/07may09_nhaUSFCC.pdf
You also might want to consider that it is in the country's interest to promote the development of next generation fuel efficient cars. It's a very important industry and one in which we want to be a leader. For our global economic security, isn't it better to fund this type of development rather than hold it up because it interferes with a free market ideal that isn't actually working right now?
By 2012, we will be seeing at least the PHEV Focus in showrooms, likely derived from the hybrid drivetrain technology now used on the Ford Fusion sedan.
KieranMullen
[CNET editors' note: Prohibited content deleted.]
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