Japanese automaker Nissan is seeking a share of the U.S. Energy Department’s $25 billion loan program for advanced energy-efficient vehicles. Lawmakers created the fund nearly a year ago, but so far no loans have been issued. Other automakers that have applied for the loans include Ford, which is asking for $5 billion, and Tesla, which seeks $400 million.
Nissan has not disclosed the amount of its loan request, but indicated it would use the money for electric vehicles. General Motors and Chrysler have asked for around $8.5 billion in financing apiece. This amount is not related to the $17.4 billion the two companies received as part of the TARP bailout in December. Honda and Toyota are not seeking any loans, according to Reuters.
Nissan said it would use the money to upgrade its Smyrna, Tennessee, assembly plant and build a new facility for battery production. Of course, there are still questions over whether a non-U.S. automaker should receive loans from the U.S. government. Although all of the immediate investment would be made on U.S. soil, a foreign automaker’s overseas operations could easily benefit from the research and development done in America.
“We are committed to the vision of energy independence, environmental sustainability, and the new energy economy, and we are hopeful that the U.S. Department of Energy approves this loan request,” the company said in a statement.
As of January 23rd, the Department of Energy had received 75 applications for the loans — 26 of which passed the technical feasibility study, including the Detroit Three and Tesla.
The next major hurdle for all companies involved is demonstrating their ability to repay the loans in a timely manner. That could be a big stumbling block for Chrysler and General Motors. Ford will likely fare a little better, and Nissan seems to be the most eligible candidate in this regard. For its 1.6 percent share of the money, Tesla is aiming to show profitability by summer. The California-based startup says it would use the money to quickly build an assembly plant for its Model S sedan, which is already in the prototype stage.
02/10, 3:11 PM
posted by:
Borat
money, money, money, money, money – is a rich man’s world
ABBA
02/10, 3:12 PM
posted by:
JakeK66
HAHA, Nissan asking us for a loan. I guess it doesn’t hurt, but seriosly?
When thinking about it though, the US Automakers have asked for loans in Europe and Asia, so I guess it isn’t unheard of, plus they will say it’s for our own good (energy independence).
02/10, 3:18 PM
posted by:
Zcarsales
I’m not even on board the American manufacturers to receive my tax money.
02/10, 3:19 PM
posted by:
bigjimid
If anything we should just put up the plants ourselves and contract out the work to Nissan, as well as others.
The government already said that they want us to be the world leader in battery technology. Ok then, here is your first buyer/investor.
02/10, 3:26 PM
posted by:
fuzz40
If the US government give money to Nissan then they give up all rights to b**** about Chrysler merging with Fiat.
02/10, 3:35 PM
posted by:
CADDY-V
Don’t give them a fu*king dime
02/10, 3:38 PM
posted by:
Blakkarr
fuzz40,
I fully agree. If NISSAN is so hard for the money let them get it from their home govt. In case they hadn’t noticed, the US govt is not in a spending mood. They just have to and giving money to a foreign company is something the Federal govt is in NO MOOD to do.
02/10, 3:58 PM
posted by:
Borat
Our government is ALWAYS in a spending mood. It has no other function in life. And we voted for even more spending last November.
02/10, 4:10 PM
posted by:
idrinorbarsaku
they better not be ****ing getting a pretty penny form that!!!!!!!!!!!!!!!
I would be so pissed if they actually approved a loan to nissan!!!!!!!!!!
ask your own damn country!!!!!!!!!!!!!
02/10, 4:17 PM
posted by:
Lariat Luxury Locomotive Liner No.3
B-U-L-L-S-H-I-T
02/10, 4:43 PM
posted by:
johnnycanuck
I don’t think there’s an opener big enough to take on this can of worms. Anyone have a stick of dynamite?
02/10, 4:52 PM
posted by:
Get Real
If Nissan is a pinko company Obama will give them money.
Obama told the world we are their friend….and I guess they can have our tax money too.
02/10, 4:55 PM
posted by:
Mutant@DCX
Why not? Good luck Nissan. There is enough money for everyone. Also, you already meet most of the requirements set forth by congress. Whats more, you won’t have to give it all back in April.
Firms must comply with applicable Federal fuel efficiency and emissions requirements.
Firms must not issue new dividends while they owe government debt.
The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including:
.
Eliminate the jobs bank.
Work rules that are competitive with transplant auto manufacturers.
Wages that are competitive with those of transplant auto manufacturers.
02/10, 4:55 PM
posted by:
tripleonefive
Hmm well I hate that we had to give money to D3 so they can continue to make more **** so why not give it to a car company who has better cars than D3
I wish it were Honda and Toyota asking bc Nissan is quasi Japanese mixed with French and although better than D3 not as good as J2 (Honda Toyota)
I say give it to them
02/10, 4:58 PM
posted by:
05Z88Path
I’m for keeping jobs and money here in the US as much as anyone else…but I get far less worked up about this then I do the huge stimulus package full of unnecessary spending. WASTEFUL SPENDING IS NOT STIMULUS. So go ahead and give Nissan a loan…they’ll pay it back (probably)…which is much more then I can say about the billions our government seems so eager to give away to everyone else.
02/10, 10:31 PM
posted by:
elviososa
If U.S don’t want to be let in the cold of EV evolution, Nissan should get the money.
02/10, 10:34 PM
posted by:
elviososa
also…why there is so many white trash / red neck like comments suddenly??
02/10, 11:13 PM
posted by:
DB9
Cuz elvi, we is the silent majority who aren’t goin to take it anymore. Nope, No Sireeee!!! No More. Had enough of them high fullutin nothingers/revenuers telling us all what we is oughta be doin and how we be doin it. Yuppers, no more I tells ya. Cool dwag and me just be huntin opossum down by the pond, sheeeet, let me tell ya that dawg won’t hunt. Tings be just fine till they start messin with the hootch again! Let me tell ya, new batch, we be callin it Porch Climber:-) Sweeeeeet;-) Sue-EEEEE:-)))
DB9
PS.
02/11, 1:38 AM
posted by:
Bankruptcy2009
Jake I have heard nothing of the kind. Ford never got any loans from Europe. So why does’nt the Japanese Government Load Nissan Money themselves?? I mean this only fair
02/11, 3:42 AM
posted by:
fordman
Get the money from the Frenchies or the Japs you scumbags. Don’t come bagging for money from the US when your a foreign company!
02/11, 12:12 PM
posted by:
Need more oil for GM
Fuk em, Fuk Japan. Fuk these freaks who think they can scam Americans out of our money. We already have unpatriotic A-holes giving them money for their Piece of sh1t cars, now they want money for developing more of them?
What a joke. Americans want to see the japs rot in hell
Buy American. Buy GM. It is your duty.
02/11, 12:47 PM
posted by:
hummah
We’ve spent hundreds of billions of dollars rebuilding sh*t we blew up in Iraq, which is a foreign country if I remember correctly. American citizens have ZERO benefit from that kind of spending, at least Nissan would sell some kind of electric car here in the states with the help of this grant money.
And after the Chevy Volt proves to be a total flop next year, we will need some kind of alternative energy solution. We need to get off oil, even if NMOFGM disagrees.