Ford, Nissan win U.S. energy dept loans

Ford Motor Co., the only U.S. automaker not receiving emergency federal loans, will get $5.9 billion in government financing to speed work on cars with better fuel economy.

Nissan Motor Co. will be able to borrow $1.6 billion under the $25 billion U.S. Energy Department program, and Tesla Motors Inc., a closely held maker of battery-powered autos, was approved for $465 million, the agency said today.

The aid is separate from bailouts for General Motors Corp. and Chrysler LLC. It was part of Congress's 2007 energy bill to help automakers boost average fuel economy by about 40 percent, to 35 miles (56 kilometers) per gallon by 2020. President Barack Obama moved up the deadline in May to 2016.

"Ford may have an advantage depending on how quickly they get their new, fuel-efficient products out the door," said Michael Robinet, an analyst at consultant CSM Worldwide in Northville, Michigan. "GM and Chrysler have other issues to worry about."

With the new Chrysler Group LLC out of bankruptcy, the Energy Department is studying how to help the Auburn Hills, Michigan-based automaker's fuel-economy projects, Secretary Steven Chu said. He said the agency also is reviewing plans for mileage improvements at GM, which remains in Chapter 11.

'There Is Money'

"There is money there," Chu said at Ford's Dearborn, Michigan, research center. "We are trying to stretch all the dollars as far as we can. We would like to help all the auto manufacturers who manufacture in the U.S."

Today's loan announcements totaled $7.97 billion, or almost a third of the Energy Department's available funds. The agency had received more than 100 applications for the aid, a spokeswoman, Ebony Meeks, said today.

Nissan, which is based in Tokyo and is Japan's third- largest automaker, said it will use the federal cash to modify its Smyrna, Tennessee, plant to make electric cars and lithium- ion battery packs. San Carlos, California-based Tesla said most of the U.S. money would go to develop an electric sedan.

Ford said it will apply the funding toward a variety of fuel-saving technologies, including electric vehicles and so- called direct-injected gasoline engines that improve mileage as much as 20 percent.