Tuesday, June 23, 2009

Ford gets DOE loans, not "Bailout" money, GM & Chrysler didn't becaause they weren't "viable companies"

Ford received $5.9 Billion in loans from the Department Of Energy and I want to stress that this is not a "Bailout" this program was initiated in 2007 under the Bush administration and the appropriations were made in 2008 before the industry meltdown.

This money will be used to further develop more fuel efficient cars, including Battery Electric and Plug In Hybrids. But there's more, it will be used to develop technologies that will reduce weight across the model lineup. You can read the article linked in the title at Edmunds.com Green Car Advisor. And more at Car Scoop

Here's FoMoCo's statement from their website;
DEARBORN, Mich., June 23, 2009 – “Ford Motor Company is proud to be among the first automakers deemed by the government to be among the best companies with the best technologies in American manufacturing and fuel efficiency. This green partnership between Ford and the U.S. government will help accelerate the development of advanced technologies for even better fuel efficiency and emissions. Ford is absolutely committed to fuel economy leadership with every new model we introduce. In fact, we plan to invest nearly $14 billion in advanced technology vehicles in the next seven years. Our partnership with the Department of Energy also will help retool our U.S. plants more quickly to produce fuel efficient vehicles and help meet the new, rigorous fuel-economy requirements.”

I've been critical of Electric, Hybrids and especially Plug In Hybrids, but they are part of the new reality. And with the improvements FoMoCo has made to the Escape and the new Fusion Hybrid I've become a fan. Many of the faults have been addressed and the Fusion Hybrid's 41 mpg city just can't be argued with. I'm also a huge fan of the other technologies such as EcoBoost and the weight reduction.

But let's be very cleaar, this is not a bailout! I especially found this line concerning GM & Chrysler amusing; Both companies applied for financing last year but their financial distress disqualified them from consideration in the first round of financing. The $25 billion program is only open to viable companies.

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