Tesla, Ford, Nissan all receive electric car development loans from US government

High five, Tesla fans -- everyone's favorite incredibly controversial electric car company has just been granted $465m in loans from the Department of Energy's Advanced Technology Vehicle Manufacturing program. The bulk of the money will go towards that postponed Model S factory, while the remaining $100m will be used to fund an electric powertrain manufacturing facility that will sell parts like motors and battery packs to other carmakers. Tesla wasn't the DOE's only big winner: Nissan received $1.6b (billion!) to build batteries and EVs in Tennessee and Ford received an undisclosed amount to build two upcoming electric cars, but since those companies have largely drama-free upper management that isn't constantly involved in lawsuits, it feels a little more routine. Still, it's an exciting time -- let's hope all these tax dollars turn into affordable, convenient electric transportation sooner rather than later.

Update: A "congressional source" has told the AP that Ford's getting $5.9 billion, so yeah, the Oval's still the big dog.

Read - Tesla
Read - Ford
Read - Nissan

[Bobby @ Jun 23rd 2009 2:18PM]

how you heat this in winter ?
it is such failed idea as brits plugs

[CaramelZappa @ Jun 23rd 2009 2:24PM]

I'll ignore your broken english and assume your asking how the car has a heater. Most electric cars have a simple ceramic heating core hooked up tot 12v. The same type of heater you plug into your wall for your room. It's not rocket science.

[Brian @ Jun 23rd 2009 2:25PM]

How much money will have been given away now? Especially 1.6B to a company that isn't even American...

[Bobby @ Jun 23rd 2009 2:35PM]

caramel you obviously failed comprehensive reading tests
it not issue of how (although question begins with that word) but issue of battery which after your "brilliant" invention you can stick up ... you know where

[CaramelZappa @ Jun 23rd 2009 2:39PM]

Okay, you clearly can't form proper sentences. But the issue of battery? What are you asking? LiPo4 batteries work fine in the cold, the heater would use up some battery life but not enough to significantly effect range. What are you on about?

[Loonie @ Jun 23rd 2009 2:46PM]

Bobby, was I seeing this right? I could have sworn I just saw you dis someone's comprehension abilities, as though your post had established some kind of benchmark of superlative grammatical caliber.

[PedoJokerBear (aka Deeznuts) @ Jun 23rd 2009 2:49PM]

you make my eyes cry.

[darkmax @ Jun 23rd 2009 2:51PM]

just why are all the people commenting recently so rude?

What's so stupid about the Brit plugs anyway? It is more widely used than those used in the USA.

[Bobby @ Jun 23rd 2009 2:53PM]

yeah right lipo4 now you really do not know what you talk about.
i guess you intend to tap into that money to smoke powder or sth ... that might one explanation of your ignorance

[Stacky @ Jun 23rd 2009 2:55PM]

Don't feed the troll guys. His broken English and failure to address responses is painful.

[TC @ Jun 23rd 2009 3:20PM]

Bobby: Me agree too. Also, how car go broom broom wiv no enjin? dey all stoopid.

[the4thheat @ Jun 23rd 2009 3:53PM]

$1.6 billion to a company that might not be American but it's going towards building factories on US land to give jobs to US workers. I really hate how people think economies are zero-sum games-there isn't a fixed amount of money in the world!!! Giving them money helps them generate more money for the US economy. Hence the idea behind economic GROWTH-the total amount of money gets larger when you grow your economy.
It's not like a poker game with your buddies where you all brought $20 and the money just changes hands. So if you gave your buddy $20 you wouldn't have money for beer.
Giving this loan is like giving your buddy some tomato seeds (for free) and letting him plant it. You'll end up harvesting a whole sh*tload of tomatoes that all have seeds in them too. And now you both have more tomatoes to eat. That's how economies work guys, you plant the factory and it grows the economy and now there's more economy. A plant needs sunlight and water to make fruit, and the factory needs electricity and steel to make cars. But in the end you get new stuff that didn't' exist before whether it's a tomato or a car, and also tons of jobs with the factory.

This is why it's moronic to whine about Toyota plants in the US, or US companies building plants in China or Chinese companies building plants in the US. ALL of those things are good for the economy because we all get part of the harvest no matter where we plant the seeds. The only thing that's actually bad for the economy is screwing with trade, as long as people are building stuff and we get part of the harvest it's a good thing. Whether we get that part of the harvest by owning the company building a plant in China, or by having a plant built here by a company in China is irrelevant since we still get part of the harvest of growth.

[MONKEY @ Jun 23rd 2009 7:38PM]

Why is there a picture of a Fisker Karma?

[therealmusashi @ Jun 23rd 2009 8:44PM]

@ MONKEY:

It's the Tesla Model S in the picture, not the Fisker Karma.

[xcrunk @ Jun 23rd 2009 2:19PM]

Kiss that money goodbye....I'm sure Tesla is having a party tonight.

They will never become a player in the automotive market. This is a complete waste of money. At best, they'll sell off the company to a larger car company who will fumble the technology. And the original owners will walk away gazillionaires.

[Gorilla800lbs @ Jun 23rd 2009 2:34PM]

I want to believe that these money will come with significant strings attached, and will require certain commitments on part of the automakers that will make it hard for them to cut and run... I want to believe it's so, anyway, although I full well may be wrong.

Also, the article says that the loan to Nissan is meant to be used at their Tennessee production facility. Regardless, it's a LOAN, and Nissan is expected to repay it. In any way, I think it better than the gov't giving research grants (as opposed to loans) to Boeing or Lockheed or IBM, who may end up manufacturing and/or R&D-ing the technology and its components in Canada or Singapore.

[bandigolo @ Jun 23rd 2009 2:35PM]

xcrunk:

you sir, just made me lol.

[kjb434 @ Jun 23rd 2009 2:43PM]

Gorilla,

These loans have been given out for years under the first Bush, Clinton, second Bush, and now Obama.

Look at how little has been done.

[webran61 @ Jun 23rd 2009 2:54PM]

If I'm not mistaken, Daimer (Mercedes-Benz) just recently bough a majority stake in Tesla. And if Chrysler was any indication, if their lack of viability doesn't kill them first, the corporate leech that is Daimler eventually will kill them.

[wako @ Jun 23rd 2009 3:02PM]

Im with you. I cant see everyone driving a tesla car anytime soon. It seems more like a niche market the company is aiming for after all. Whats the point of funding a company that is only after a niche market in the first place? =P

[BigD145 @ Jun 23rd 2009 4:03PM]

No, giving billions to Ford is a waste of money. They don't know how to make electric cars. They only know how to destroy them.

[kingu @ Jun 24th 2009 6:26AM]

hear hear! BigD145 talketh teh truth.

[fastm3driver @ Jun 24th 2009 5:36PM]

You sir are correct unless Tesla keeps getting 500 million dollar "loans."
For the record Sweden gave Ford a boat load of money and Germany gave a bunch to GM.

[z0phi3l @ Jun 23rd 2009 2:20PM]

Yay!!!!!


More wasted Federal money that my kids will be paying back in the future

[banana2011 @ Jun 23rd 2009 2:41PM]

Do you know what a loan is? Like a loan you never needed for school. =D

[kjb434 @ Jun 23rd 2009 2:45PM]

Just because it's called a LOAN doesn't mean it'll be paid back.

[C@RL @ Jun 23rd 2009 3:35PM]

"More wasted Federal money that my kids will be paying back in the future"
Precisely my thoughts, only I'd be in that class of "kids" who'll be paying it off.

Well, we can just add it on to our ever growing $11,000,000,000,000.00 nation debt... oh and Thank you President Obama, yes, giving loans to people who don't ask for them and sink their companies all by them selves sounds like a capital idea... oh and um, whens the pay back date for the loans??? Oh yeah I forgot... NEVER. Tax payers can take care of that...


-
C@RL

[bernardino @ Jun 23rd 2009 3:43PM]

What future? Your kids will all be killed off by global warming.

[jitters333 @ Jun 23rd 2009 5:43PM]

Hey At least we wont need heated seats anymore =D

[Taylor @ Jun 24th 2009 3:44AM]

*insert conservative rant here*

Look, I'm not pro-liberal or pro-conservative (probably more on the liberal side of economics but I'm not in support of all things like welfare for the long-term unemployed)... but, this idea has to be better than the aftermath of the Great Depression, where the government merely cut jobs, tightened its belt, and didn't fix the economy till WWII.

[Bradford @ Jun 23rd 2009 2:21PM]

"Undisclosed amount"? What the hell? What about government transparency? The nationalizing of the auto industry continues...

[something clever @ Jun 23rd 2009 2:26PM]

Don't complain, comrade. This is the most transparent administration ever.

I know that is true because that is what they said they would be. They wouldn't lie, would they?

[Jay Voorhees @ Jun 23rd 2009 2:40PM]

Its undisclosed because they dont want the public to see how much money really is being pissed away trying to make detroit the center for automobile innovation that it should have been 10 years ago.

[Karl L. @ Jun 23rd 2009 4:18PM]

WTF are we giving money to a Japanese based company in Nissan? I see the money being ok to go to Ford and Telsa (CA based company), but Nissan?!?!?! That really pisses me off, STOP supporting these damn Japanese Car companies, they helped in the collapse of Detroit!!!!! Yeah i know Detoit did dig their own grave, but these Japanese car companies didn't help either. When buying a new car, be smart and BUY AMERICAN. Put food back on the plates of hard working Americans. Nothing against the Japanese, but when you live in the US, USA comes first, the world comes 2nd. Help your own people before helping others.

[CaramelZappa @ Jun 23rd 2009 4:49PM]

Nissan is using the money to build facilities in the US and employ some of the people who desperately need jobs after GM's collapse.

[Gorilla800lbs @ Jun 23rd 2009 5:01PM]

I think it's more complicated that Japanese vs American. If the condition is that money is to be spent on R&D, construction, and production in USA, I think we're much better off in terms of stimulating local industries and creating/maintaining jobs than, say, just giving money to an All-American Bank Co something.

Besides, Nissan is a subsidiary of a Euro-Japanese Renault-Nissan conglomerate. Just pointing out for the sake of accuracy, although I admit it doesn't address the core of your argument. What's important, however, is that they have three plants in USA. They hire American workers, buy raw materials from American mills, source parts from North American manufacturers, and build engines here.

[gunboatdiplomacy @ Jun 23rd 2009 5:20PM]

oi dummy. A, it's a LOAN; and B, Honda Odysseys are made in Ohio while the Ford Flex is made in Ontario. also, Nissan's electric Cube will be assembled in Tennessee. so while i agree with you that buying american cars might make american companies healthier, it doesn't necessarily follow that american workers will automatically be better off.

[Evan @ Jun 23rd 2009 2:22PM]

GM and Chrysler received billions from the government, so I guess it's only fair that Ford gets a handout too. At least Ford will put it to good use!

[bandigolo @ Jun 23rd 2009 2:38PM]

If I remember correctly, Ford didn't want a handout.

And it's not like the bailed-out companies were just given free money. They gave up serious stake to stay afloat. Whether it was a wise capitalistic investment by the U.S. Government or a socialist endeavor, remains to be seen.

[wako @ Jun 23rd 2009 3:09PM]

NO, NO, NO, NO!


This is no way shape or form a hand out! Ford is not taking this money to try to make the company viable, they are using it for R&D! I think this is important to differentiate as Chrysler and GM NEED the money because their company is no longer viable, whereas Ford is taking money to help improve current and future technology to better America's needs.

[Mycroft @ Jun 23rd 2009 2:26PM]

These guys must have donated heavily to Obama during the campaign.

[CharlieX @ Jun 23rd 2009 2:31PM]

nice ignorant post.

[cduran01 @ Jun 23rd 2009 2:31PM]

Obama wasn't president in 2007 when this money was approved.

[Mycroft @ Jun 23rd 2009 2:35PM]

But he is now isn't he?

[cduran01 @ Jun 23rd 2009 2:37PM]

Learn how the government works buddy, this was signed and passed before he came into office therefore he can't stop it if he wanted to.

[Mycroft @ Jun 23rd 2009 2:40PM]

He decides who get it.

What you need to learn is he who pays, plays. It's the Chicago way.

[OneLove @ Jun 23rd 2009 2:41PM]

its hard to argue with dumb rednecks.

[bandigolo @ Jun 23rd 2009 2:41PM]

You're both right. Now stop.

[Mycroft @ Jun 23rd 2009 2:49PM]

A typically bigoted response, but misplaced.

While you sit with your head in the sand, convinced of our leader's infallibility, I choose to see things realistically. The handout of subsidies to large corporate entities is a political decision and has little or nothing to do Obama inc's misguided "greening" of the U.S. It is virtually impossible not to be a politically motivated decision regarding who gets this money. But continue to live in your blissful ignorance.

[hiro256 @ Jun 23rd 2009 5:46PM]

well senators are pretty easy to bribe just ask the mpaa and riaa :o