Nissan Motor has applied for US government financing to help it make electric vehicles and develop the advanced batteries that power them.
Nissan, which also on Monday announced plans to cut 20,000 jobs worldwide but stressed its commitment to electric vehicles, was the first Japanese automaker to seek taxpayer-funded loans from the Energy Department to facilitate its US manufacturing plans, Reuters reported.
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The automaker did not disclose the amount of its loan request, which was submitted in December but disclosed publicly by the company only on Monday.
Energy Department officials do not confirm or comment on specific applicants but Nissan said it plans to upgrade its Smyrna, Tennessee, assembly plant, and build a new facility for battery production, according to the report. It plans to bring an electric car to the US by 2010.
“We are committed to the vision of energy independence, environmental sustainability, and the new energy economy, and we are hopeful that the US Department of Energy approves this loan request,” the company said in a statement.
The loan scheme was approved by Congress last September to help struggling US manufacturers make upgrades necessary to produce cars and trucks that can meet sharply higher fuel standards next decade.
The new Obama administration has made clear it will support proposals to improve fuel efficiency and reduce CO2 emissions.
General Motors, Ford and Chrysler have asked for nearly US$22bn combined in financing but Honda and Toyota have not sought help, officials of both companies told Reuters.
The Detroit Three showed off a variety of electric and hybrid models and prototypes during bailout loan hearings in Washington late last year, after top executives were criticised for travelling to initial hearings in private jets.
GM will launch its plug-in, ‘range extender’ electric/hybrid Chevrolet Volt in the US next year and European affiliate Opel plans a version called the Ampera. Toyota, Ford and Chrysler all have electric car plans, as well.
Energy Department loan eligibility requirements favour companies operating facilities older than 20 years, which gives US manufacturers a clear edge in gaining retooling money as long as their proposals meet other requirements, Reuters noted, adding that new projects are also considered. Nissan’s Smyrna plant began by building small pickup trucks in 1983.
So far, the energy department has received 75 applications and Nissan is among 26 that have cleared initial hurdles, the company told the news agency.
