Ford Invests $450 Million in EV, DOE Loans $465 Million to Tesla

Energy Efficiency News - US carmaker Ford is to invest $450 million in its Michigan assembly plant as part of its ambitious electric vehicle plan...The investment comes on top of the $550 million already committed to transform the Michigan SUV factory into a modern car plant, which will start producing the new Ford Focus this year, and the Ford Electric next year. A package of incentives and tax credits totalling $188 million from the Michigan Economic Growth Authority board has been critical in drawing Ford back to the area.

EERE News - DOE announced on January 21 that it has closed its $465 million loan with Tesla Motors, Inc. for the construction of two manufacturing facilities, one in southern California for the Model S electric sedan and one in Palo Alto, California, for electric powertrains. The Palo Alto facility will assemble electric vehicle battery packs, electric motors, and related electric vehicle control equipment, both for Tesla's own electric vehicles and for sale to other automobile manufacturers.
The Tesla announcement marks the second loan agreement signed by DOE with an advanced technology vehicle manufacturer, following a $5.9 billion agreement with Ford Motor Company in September 2009. DOE has also signed conditional commitments with Nissan North America, Inc. and Fisker Automotive. Tenneco Inc. became the first advanced technology component manufacturer to obtain a conditional commitment from DOE in October of last year.

Congress appropriated $7.5 billion to DOE to support up to $25 billion in loans to companies using U.S. factories to make cars and components that increase fuel economy at least 25% above 2005 fuel economy levels. DOE plans to make additional loans over the next several months to large and small auto manufacturers and parts suppliers up and down the production chain. The intense technical and financial review process is focused not on choosing a single technology over others, but is aimed at promoting multiple approaches for achieving a fuel efficient economy.