Obama Loans Help US Auto Industry
News.com.au reports that US car makers Ford and Nissan will receive more than $7bn USD in government loans to develop more fuel efficient cars.
The loans given by the US governement represents the Obama’s administration commitment to re-shaping the troubled US car market into a lean and enviromentally focused industry.
Ford will receive $USD5.9 billion to develop fuel efficient vehicles, with Nissan receiving $USD1.6 billion to develop all-electric cars. The loans issued by the administration’s Energy Department are only part of its $USD17 billion in loans it will use to improve automotive fuel economy.
Commenting on News.com.au US Energy Secretary Steven Chu said: ”by supporting key technologies and sound business plans, we can jump-start the production of fuel-efficient vehicles in America”
“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,” he added.
It is expected that Ford will use to use its funding to convert two of its truck making factories to make smaller cars, with money also going towards retooling factories in Michigan, Ohio, Illinois, Kentucky and Missouri.
Loans outlined for Chrysler and Fiat
News.com.au also reports that Energy Secretary Chu is in talks with Chrysler Group for funding to help the rescued car marker make smaller cars.
Since Fiat acquired a majority stake in Chrysler, the italian car marker has pledged to make one of its models in the US.
Source: News.com.au