Continued: Ford lands loans for fuel-efficient cars

DEARBORN, MICH. - Three automakers, including Ford Motor, will get the first $8 billion from a $25 billion loan program aimed at speeding development of more fuel-efficient vehicles, Energy Secretary Steven Chu said during a visit to Ford's headquarters Tuesday.

Ford, the only Detroit automaker that did not receive emergency government loans this year, will get $5.9 billion to help it retool 11 factories in the Midwest. The money, about half as much as Ford had requested, will help it make 13 of its models more efficient. Ford plans to start selling four models of electric vehicles by 2012.

Japanese carmaker Nissan will receive $1.6 billion for overhauling its factory in Smyrna, Tenn., where it plans to build electric vehicles. And Tesla Motors, a six-year-old California company, will get $465 million to make electric vehicles and drive trains.

GM and Chrysler are among the dozens of other applicants seeking financing from the Advanced Technology Vehicles Manufacturing Loan Program, which Congress created in 2007 to help carmakers meet more stringent fuel-economy standards. The two companies' bankruptcies made them ineligible for the first round of loans, but they are expected to be approved later. Lawmakers from auto-producing states are pushing to double the amount of the loan program.

"The most fuel-efficient cars in the world must be made right here in America," Chu said.

In a statement, President Obama said the loans "will create good jobs and help the auto industry to meet and even exceed the tough fuel economy standards we've set, while helping us to regain our competitive edge."

Ford's chief executive, Alan Mulally said Ford planned to invest $14 billion in advanced technology in the next seven years. The $5.9 billion the company is borrowing through the loan program will be disbursed through 2011, and Ford plans to begin repaying its loans in 2012, Mulally said. The money will go toward plants in Illinois, Kentucky, Michigan, Missouri and Ohio.

"Ford is absolutely committed to delivering the best fuel economy in every new vehicle we produce," he said.