Ford wouldn't turn down another $5 billion loan from the DOE
2010 Ford Taurus SHO - Click above for high-res gallery
While Ford managed to get $5.9 billion from the DOE's ATVMLP fund yesterday, that's only about half of what the automaker asked for. Ford's original request for help was for $11 billion. And, since the feds are still handing out money at a high rate, representatives from the Blue Oval are not giving up on getting the rest of the money they asked for. Sue Cischke, Ford group vice president of sustainability, environment and safety engineering, told Automotive News (subs req'd) that, "If they raise the appropriations from the $25 billion to the $50 billion, we qualify." There hasn't been much chatter that the ATVMLP will be doubled, but never say never, right?
As we learned yesterday, Ford's loan will be used to bring "13 more fuel efficient models" to market, including making better (read: cleaner) Focuses, Escapes, Tauruses and F-150s. Electric vehicles and EcoBoost technology are part of Ford's strategy. Ford will have to start paying the money back in 2012.
Gallery: 2010 Ford Taurus SHO
[Source: Automotive News (subs req'd)]
Reader Comments (Page 1 of 1)
Don J 4:44PM (6/24/2009)
Stealth bail-out of Ford. All of the big 3 are on the dole.
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Chris M 5:06PM (6/24/2009)
It's a loan, it only becomes a "bailout" if Ford fails to pay it back.
Still, I think Ford should just be glad they got that loan and not get greedy. Excessive debt won't help their finances.
Don J 5:23PM (6/24/2009)
Well the money GM & Chrysler got were just loans too.
jpm100 5:20PM (6/24/2009)
"It's a loan, it only becomes a 'bailout' if Ford fails to pay it back"
That wasn't the definition before GM & Chrysler forced to go for the bankruptcy option and they were still the 'loan' stage. It was being called a bailout at that point.
At a minimum they are getting discounted loans they couldn't get anywhere else.
Jeff 6:06PM (6/24/2009)
you can't call this a bailout. This money isn't for Ford's operations, it's specifically for reducing fuel consumption of domestic built vehicles. Ford's already proving that they are viable without government support. The DoE is just stepping in to kick start more efficient technology development.
Throwback 7:23PM (6/24/2009)
Any automaker can apply for these loans, except GM and Chrysler, they are not viable.. Nissan and Tesla have also qualified. This money was approved by congress and funded with the express intent of developing "green" cars.
GM & Chrysler's money came by way of TARP.
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jpm100 8:48PM (6/24/2009)
Its not only for development of new vehicles.
The purpose of the loans was to make it feasible for the domestic automakers to expand and retool production to meet the new super strict CAFE standards. It was meant to offset a regulatory burden which would put them out of business.
The money was lobbied on the theory is that anyone taking the money can't otherwise make the changes required and stay in business. This included Ford. By taking the money they are admitting they aren't viable. Nissan is not the pillar of viability for sure.
Its kind of ironic that their viability is the reason not to give GM & Chrysler money to be viable.
And in a sense, Nissan's low volume electric car doesn't seem to justify their portion. This was meant to spread fuel saving technology into the mainstream not reward EV ventures. Not that they don't justify a cut, but 1.6 billion seems a little much for what will be a fringe technology for another decade at least.
Greg 9:12PM (6/24/2009)
It's kind of strange that a "regulatory burden" and not consumer preference is the reason a company won't be viable.
I'm not so sure it is an admission of viability, it seems more like taking advantage of an opportunity.
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