The U.S. Government created a requirement that by 2020, the majority of cars sold here must get at least 35 miles per gallon. This requires a big commitment on the part of auto makers and so the Energy Department was authorized last year to lend $25 billion dollars. The first round of financing is expected to be announced today with Ford, Nissan, and Tesla getting all getting a sizable chunk during this first round. GM and Chrysler both wanted a bunch of money too, but neither fit the criteria of being a “financial viable” so they were disqualified for this first round.
Nissan hasn’t announced how much the Japanese automaker has requested from the U.S. Government, but we know that Michigan-based Ford and California-based Tesla Motors Inc. are expected to get $5 billion and $450 million respectively.
This $25 billion fund was approved by Congress in 2008 to help auto makers retool facilities and speed up development of more energy efficient vehicles. It was the Government after all that decided that vehicles needed to reach an average of 35 miles per gallon by a random date instead of the natural evolution of development and technology......more...
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