Tuesday the Department of Energy released more than $8 billion in auto loans aimed at developing "greener" auto technologies. Tesla Motors, a small electric vehicle manufacturer, received $465 million.
The government is one step closer to "greening" the American auto industry.
According to the Department of Energy's (DOE) press release, the Obama Administration released $8 billion in
"conditional loan commitments for the development of innovative, advanced vehicle technologies that will create thousands of green jobs while helping reduce the nation’s dangerous dependence on foreign oil."
While Tesla has pioneered many aspects of electric car design, it has only produced a little over 500 cars to date, which puts into perspective the amount of money it received.
Tesla will use $365 million of the low-interest loans to help produce the Model S, an all-electric sedan that is their first venture into the sedan market. Their first releases, the Tesla Roadster and Roadster Sport, are sleek, fast, and efficient, but come at a price. Despite significantly lower maintenance costs over the lifetime of the vehicle and a $7,500 federal tax break, both retail for over $100,000, which makes them available to only the wealthiest of customers.
The Model S sedan consumes no gasoline and can be charged from any conventional 120v and 220v outlet. It is expected to receive the equivalent of 250 mpg and will begin production in 2011. It retails for just under $50,000.
The other $100 million, according to Business Wire, will be used
"for a powertrain manufacturing plant . The facility will supply all-electric powertrain solutions to other automakers, greatly accelerating the availability of mass-market EVs. The new facility will employ about 650 people."
Ford Motor Company and Nissan North America were also recipients of the DOE's auto loans. $5.9 billion dollars was awarded to Ford Motor Company and $1.6 million to Nissan North America. Ford will use the money to transform factories in a number of states to make thirteen of their traditional models more efficient.
Likewise, Nissan will be using their funds to "retool" a factory in Tennessee to build
"advanced electric automobiles and to build an advanced battery manufacturing facility."
Despite Obama's increased and aggressive new auto standards, nearly 100 applicants applied for the Department of Energy's auto loan program. The Department of Energy has a total of $25 billion available in the program, but it is unknown when the rest of the funds will be released.
