The US government will lend US$5.9 billion to Ford Motor Co and US$1.6 billion to Japanese automaker Nissan to invest in improving the fuel economy of their US-built vehicles, officials said on Tuesday.
The loans are the first awarded out of a US$25 billion program to help automakers meet upcoming fuel efficiency standards, US Energy Secretary Steven Chu said at a press conference.
“I’m pleased to announce US$8 billion in provisional loan agreements that will drive innovation in fuel efficiency and help revolutionize the automobile industry in America,” Chu said.
PHOTO: AFP
“These loans will help the auto industry meet and even exceed the president’s tough new fuel standards while creating jobs, reducing our dependency on foreign oil and ensuring America’s competitiveness,” he said.
Another US$465 million will be loaned to electric sports car maker Tesla. Additional loans will be awarded to “large and small automobile manufacturers and parts suppliers up and down the production chain” over the coming months, said Chu, who vowed to release the funds as quickly as possible.
BAKRUPTCY
The energy department began discussions with Chrysler “the day they emerged from bankruptcy” protection and has already begun reviewing the technical aspects of General Motors’ request in the hopes that it will successfully emerge from bankruptcy protection, Chu told reporters.
Ford will use the US$5.9 billion retool plants in five states and boost the fuel efficiency of close to 2 million new vehicles annually. The department of energy estimates these upgrades will lead to fuel savings of more than 20 million gallons (75.7 million liters) of gasoline a year.
That would produce a savings of more than US$500 million a year for US drivers at current fuel prices, Chu said.
Nissan will use the loans to modify its Tennessee plant to produce zero-emissions electric vehicles as well as the lithium-ion battery packs to power them.
With this loan, “Nissan expects to cut the costs of its batteries in half and ramp up production of 150,000 American-made competitively priced electric vehicles annually,” Chu said.
Ford chief executive officer Alan Mulally embraced the “historic green partnership” and said the automaker was committed to investing nearly US$14 billion in advanced technology vehicles in the next seven years.
Nissan welcomed the loan and said it is “committed to being a leader in zero-emissions mobility.”
“This loan is an investment in America,” Dominique Thormann, senior vice president for Nissan North America, said in a statement. “It will help us put high-quality, affordable zero-emissions vehicles on our roads.”
California-based Tesla Motors said it will use US$365 million for production, engineering and assembly of the Model S, an all-electric family sedan that carries seven people and travels up to 300 miles (483km) per charge. The additional US$100 million will be used for a powertrain manufacturing plant.
ANNOUNCEMENT: People who do not comply with the ban after a spoken warning would be reported to the police, the airport company said on Friday Taoyuan International Airport Corp on Friday announced that riding on vehicles, including scooter-suitcases (also known as “scootcases”), bicycles, scooters and skateboards, is prohibited in the airport’s terminals. Those using such vehicles should manually pull them or place them on luggage trolleys, the company said in a Facebook post. The ban intends to maintain order and protect travelers’ safety, as the airport often sees large crowds of people, it said, adding that it has stepped up publicity for the regulation, and those who do not comply after a spoken warning would be reported to the police. The company yesterday said that
QUIET START: Nearly a week after applications opened, agencies did not announce or promote the program, nor did they explain how it differed from other visitor visas Taiwan has launched a six-month “digital nomad visitor visa” program for foreign nationals from its list of visa-exempt countries who meet financial eligibility criteria and provide proof of work contracts. To apply, foreign nationals must either provide proof that they have obtained a digital nomad visa issued by another country or demonstrate earnings based on age brackets, the Bureau of Consular Affairs said. Applicants aged 20 to 29 must show they earned an annual salary of at least US$20,000 or its equivalent in one of the past two years, while those aged 30 or older must provide proof they earned US$40,000 in
UNITY MESSAGE: Rather than focusing on what Trump said on the campaign trail about Taiwan, Taipei should be willing to engage with the US, Pompeo said Taiwan plays a key role in Washington’s model of deterrence against China, former US secretary of state Mike Pompeo said in a speech in Taipei yesterday. During US president-elect Donald Trump’s first term, “we had developed what we believe was a pretty effective model of deterrence against adversaries who wanted to undermine the set of rules and values that the people of Taiwan and the people of the US hold dear,” Pompeo said at a forum organized by the Formosa Republican Association. “Succeeding in continuing to build this model will not solely rest at the feet of president Trump and his team,
SERIOUS ALLEGATIONS: The suspects formed spy networks and paramilitary groups to kill government officials during a possible Chinese invasion, prosecutors said Prosecutors have indicted seven retired military officers, members of the Rehabilitation Alliance Party, for allegedly obtaining funds from China, and forming paramilitary groups and assassination squads in Taiwan to collaborate with Chinese troops in a possible war. The suspects contravened the National Security Act (國家安全法) by taking photos and drawing maps of key radar stations, missile installations and the American Institute in Taiwan’s headquarters in Taipei, prosecutors said. They allegedly prepared to collaborate with China during a possible invasion of Taiwan, prosecutors said. Retired military officer Chu Hung-i (屈宏義), 62, a Republic of China Army Academy graduate, went to China
RSS