FORD WILL receive a share of $25 billion in US government loans designed to help car firms retool factories for making fuel-efficient cars, according to sources familiar with the decision by the Obama administration.
US Energy Secretary Steven Chu made the announcement yesterday at an event at Ford headquarters in Dearborn, Michigan, sources said.
Ford has reportedly qualified for the first tranche of financing, approved last year by Congress and the Bush administration. The amount was not disclosed, but Ford had sought billions, sources have said.
The Obama administration previously said it would draw down $10 billion in loans this year and award the balance in 2010. The loan program is intended to help carmakers meet stricter government fuel-efficiency targets by spurring development of advanced gasoline-electric hybrids, all-electric vehicles and other efficient technologies.
It had been long expected that Ford would be approved for assistance. General Motors and Chrysler applied for funding as well, but government officials have said that any decisions on their bids would have to wait until their finances improve.
– Reuters