24 Jun 2009

$US5.9 billion loan for Ford

12:18 pm on 24 June 2009

The US government is lending Ford almost $US5.9 billion to upgrade its factories and make its cars more fuel efficient.

The loan, from the Department of Energy, is part of a $US25 billion fund to help carmakers produce more environmentally friendly cars.

Nissan Motor Co Ltd will receive $US1.6 billion, and Tesla Motors Inc will receive $US465 million in advanced technology financing.

Ford chief executive Alan Mulally said the loan is part of a $US14 billion investment in advanced technology vehicles over the next seven years.

Ford will receive funding through 2011 to retool factories in Michigan, Ohio, Illinois, Kentucky and Missouri.

The company is focusing on electrification and improvements to conventional engines as well as converting two truck plants for car production.