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September 23, 2009

US: Ford first in Detroit with DoE technology loan

Ford is so far the only Detroit-based US automaker to receive a Department of Energy Advanced Technology Vehicles Manufacturing Incentive Programme loan.

Ford is so far the only Detroit-based US automaker to receive a Department of Energy Advanced Technology Vehicles Manufacturing Incentive Programme loan.

It said it was getting US$886m to invest in technology that will help develop more fuel efficient vehicles.

The financial request is expected to be fully funded by the DOE by 28 September, the auto maker said in a federal filing cited by the Dow Jones news agency.

General Motors has also applied for the loans but has yet to be approved due to its bankruptcy proceedings. Chrysler merged most operations with Fiat last June.

Other recipients include US electric vehicle start-ups Tesla Motors and Fisker Automotive.

The DOE announced last week that it had set aside $5.9bn in loans for Ford so it can upgrade factories in Illinois, Kentucky, Michigan, Missouri, and Ohio to produce smaller cars, Dow Jones said.

Ford said the loans mature on 15 June, 2022. Each advance will bear interest at a blended rate based on the Treasury yield curve at the time such advance is borrowed and the principal amortisation schedule for that advance. Interest will be payable quarterly.

The principal amount of the loans will be payable in equal quarterly instalments commencing on 15 September, 2012, the report added.

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