According to Associated Press sources, the Energy Department will announce on Tuesday that Ford, Nissan and Tesla will be receiving loans from a $25 billion fund setup to help the development of fuel-efficient vehicles. GM and Chrysler have been excluded from the first round of funding because of a stipulation that the loans only go to "financially viable" companies. Although the program is not limited to electric or hybrid technologies, all three companies have electric vehicles either in production or in the works.
The loan program was created in 2007 legislation but not funded until last fall. According to the official rules of the application process, the loans are intended to help with the costs of reequipping, expanding, and establishing manufacturing facilities in the United States to produce advanced technology vehicles, and components for such vehicles. These vehicles must provide meaningful improvements in fuel economy performance.
Energy Secretary Steven Chu is scheduled to make an official announcement on the loans in Dearborn, Michigan.