DoE finalizes $5.9B loan for Ford Motor
Washington, D.C. — The U.S. Department of Energy (DoE) has closed on its loan offer of $5.9 billion to Ford Motor Company to transform its factories across Illinois, Kentucky, Michigan, Missouri, and Ohio to produce more fuel-efficient vehicles. The loan, part of the Department’s Advanced Technology Vehicles Manufacturing program, is the first to be finalized since the program was appropriated in the fall of 2008.
Earlier this week, the Obama administration announced a new standard that requires an average fuel economy of 35.5 miles per gallon in the year 2016. That standard is expected to reduce oil consumption by an estimated 1.8 billion barrels, prevent greenhouse gas emissions of approximately 950 million metric tons, and save consumers more than $3,000 in fuel costs. The funding announced today will help Ford meet those targets.
In June, DoE issued a conditional loan commitment to Ford to finance up to 80 percent of qualified expenditures to improve the efficiency of light vehicles by using technologies that improve internal combustion engines and transmissions, reduce vehicle weight, reduce vehicle drag with more aerodynamic designs, and improve vehicle efficiency through the development of hybrid and plug-in electric vehicles. The investment is also designed to create new clean energy jobs.
The Advanced Technology Vehicles Manufacturing Loan Program is focused on helping domestic manufacturers apply the best available technologies to improve the efficiency of the vehicles they produce.
At the same time, DoE also offered loans to Tesla Motors, and Nissan Motors for a total of $8 billion. The program was appropriated $7.5 billion by Congress to support up to $25 billion in loans to companies making cars and components in U.S. factories that increase fuel economy at least 25 percent above 2005 fuel economy levels.
The DoE plans to make additional loans under this program over the next several months to large and small auto manufacturers and parts suppliers across the entire production chain.

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