Ford, Tesla, Nissan receive $8 Billion loan from DOE for Production of Fuel Efficient Cars

After eight months of careful evaluation, the U.S. Department of Energy announced the first recipients of the Advanced Technology Vehicles Manufacturing Incentive Program which was enacted last year. Nissan, Ford, and Tesla will be getting an $8 billion loan to develop technologies and vehicles which will be fuel efficient and eco-friendly.

Ford will get a bigger chunk of $5.9 billion from the fund. Nissan will be able to use $1.6 billion while Tesla has a share of $465 million.

DOE spent about 8 months sitting on the funds while deliberating which companies will make good use of the money approved for release by the Bush administration.

The car manufacturers who got the loan will be able to go full efforts on their hybrid and EV programs. Despite Ford and Nissan getting the bigger chunk, experts say that Tesla benefits most of the program. Tesla will be able to construct a new plant to help in the assembly of their Sedan Model S which is projected to be a big seller.

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Ford is not on the losing end though. A recent study by car experts foresees that the Detroit big three will gain if they can improve the fuel mileage of their range of vehicles. If they will be able to improve their current 26.9mpg average to meet the mandated 35mpg, a profit of $2.9 billion can be raked in.

Ford is planning to invest about $14 billion to advance their car technology in the next seven years. Some of the funds will be used to retool their factories and help in the production of more fuel efficient cars.

Nissan is focused on developing zero emission vehicles and expand their Smyrna assembly line.

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