Government loans for Ford, Nissan and Tesla

Subscribe to our RSS feed or get updates by Email for all the latest spy photos, videos, news and reviews!

President Obama is going all out to give a boost to the auto industry particularly where energy efficient vehicles are concerned. The Obama administration said onTuesday that it would lend $5.9 billion to Ford Motor Co. and about $2.1 billion to Nissan Motor Co. and Tesla Motors Inc. in a government-industry partnership to build green cars.

The governement has earmarked $25 billion for the green vehicles and this is only the first part of the largesse. Ford will use the money to upgrade its factories so that it can produce 13 fuel efficient vehciles. Nissan will also upgrade its factories and also build a battery manufacturing plant. Tesla will use $465 million in loans to build electric vehicles and electric-drive powertrains in California.

The loans are being given on low interest to auto makers so that they can use the money to reduce pollution levels by building greener cars. All this will also help create more jobs and perhaps the beaten down auto sector will get a fresh leasse of life.