Tesla gets fed $$$$
- Thread starter djs
- Start date
shelbyelite
PERMANENTLY BANNED
- May 10, 2007
- 1
Careful......
A well respected member got a weeks vacation for starting these types of political threads. I know its car related, but also involves politics which the powers that be are trying to keep off this site. Just a friendly warning.
A well respected member got a weeks vacation for starting these types of political threads. I know its car related, but also involves politics which the powers that be are trying to keep off this site. Just a friendly warning.
S592R
GT Owner
- Dec 3, 2006
- 2,800
it is interesting given Tesla's business model from the get go. Seems questionable to give a company that wanted to build an "exotic" to prove its concept needed Federal funds to build its pedestrian car. Seems that investors would line up for a viable business model.
Also Ford tapped that resource to reconfigure SUV plants into small car plants here in the USA. That makes sense .... dealer network, established name, viable management team (proactive) and building wide amount of product for a good overall mix. :thumbsup:thumbsup
Also Ford tapped that resource to reconfigure SUV plants into small car plants here in the USA. That makes sense .... dealer network, established name, viable management team (proactive) and building wide amount of product for a good overall mix. :thumbsup:thumbsup
BlackICE
GT Owner
Here's the Rueter's story.
U.S. loans automakers $8 billion to get green
Ford, Nissan and Tesla will receive billions in government loans to ramp up development of more fuel-efficient cars.
June 23, 2009: 1:16 PM ET
DEARBORN, Mich. (Reuters) -- Ford Motor Co. will receive nearly $5.9 billion in U.S. government loans to spur development of more fuel-efficient vehicles, the Obama administration said Tuesday.
Japan's Nissan Motor Co. Ltd. will receive $1.6 billion, and start-up Tesla Motors Inc. will receive $465 million in advanced technology financing from the Energy Department program.
"By supporting key technologies and sound business plans, we can jumpstart the production of fuel-efficient vehicles in America," Energy Secretary Steven Chu said at Ford headquarters.
"These investments will come back to our country many times over by creating new jobs, reducing our dependence on oil, and reducing our greenhouse gas emissions," he said.
The agency plans additional loans over the next several months to automakers and suppliers.
Chu said the administration began talks with Chrysler Group LLC on possible energy technology loans immediately after the company stepped out of bankruptcy protection this month. It is also having "technical" discussions with General Motors Corp., which is currently reorganizing in bankruptcy proceedings.
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.
Chrysler is operating in an alliance with Italy's Fiat.
"There is money there - I wouldn't say set aside - but we are trying to stretch these dollars as far as we can," Chu told reporters.
Both Chrysler and GM rely on government bailout funds to operate. Ford, struggling like other companies with the industry's sharp sales decline this year, is the only U.S. auto manufacturer that did not seek bailout assistance.
Ford will receive loan funds through 2011 to retool factories in Michigan, Ohio, Illinois, Kentucky and Missouri in order to produce 13 models. Ford is focusing on electrification and improvements to conventional engines as well as converting two truck plants for car production.
The loan is part of a $14 billion investment Ford plans in advanced technology vehicles over the next seven years, said Ford Chief Executive Alan Mulally.
The No. 2 U.S. automaker hopes most of that financing will come from government loans.
Nissan's North American unit will receive the funds to retool its Smyrna, Tennessee, facility to build electric cars and an advanced battery manufacturing plant, Chu said.
Tesla, based in San Carlos, California, will receive funds to build electric drive trains and electric vehicles.
Ford (F, Fortune 500) shares were up 14 cents, or 2.6%, to $5.52 in early afternoon trading on the New York Stock Exchange.
U.S. loans automakers $8 billion to get green
Ford, Nissan and Tesla will receive billions in government loans to ramp up development of more fuel-efficient cars.
June 23, 2009: 1:16 PM ET
DEARBORN, Mich. (Reuters) -- Ford Motor Co. will receive nearly $5.9 billion in U.S. government loans to spur development of more fuel-efficient vehicles, the Obama administration said Tuesday.
Japan's Nissan Motor Co. Ltd. will receive $1.6 billion, and start-up Tesla Motors Inc. will receive $465 million in advanced technology financing from the Energy Department program.
"By supporting key technologies and sound business plans, we can jumpstart the production of fuel-efficient vehicles in America," Energy Secretary Steven Chu said at Ford headquarters.
"These investments will come back to our country many times over by creating new jobs, reducing our dependence on oil, and reducing our greenhouse gas emissions," he said.
The agency plans additional loans over the next several months to automakers and suppliers.
Chu said the administration began talks with Chrysler Group LLC on possible energy technology loans immediately after the company stepped out of bankruptcy protection this month. It is also having "technical" discussions with General Motors Corp., which is currently reorganizing in bankruptcy proceedings.
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.
Chrysler is operating in an alliance with Italy's Fiat.
"There is money there - I wouldn't say set aside - but we are trying to stretch these dollars as far as we can," Chu told reporters.
Both Chrysler and GM rely on government bailout funds to operate. Ford, struggling like other companies with the industry's sharp sales decline this year, is the only U.S. auto manufacturer that did not seek bailout assistance.
Ford will receive loan funds through 2011 to retool factories in Michigan, Ohio, Illinois, Kentucky and Missouri in order to produce 13 models. Ford is focusing on electrification and improvements to conventional engines as well as converting two truck plants for car production.
The loan is part of a $14 billion investment Ford plans in advanced technology vehicles over the next seven years, said Ford Chief Executive Alan Mulally.
The No. 2 U.S. automaker hopes most of that financing will come from government loans.
Nissan's North American unit will receive the funds to retool its Smyrna, Tennessee, facility to build electric cars and an advanced battery manufacturing plant, Chu said.
Tesla, based in San Carlos, California, will receive funds to build electric drive trains and electric vehicles.
Ford (F, Fortune 500) shares were up 14 cents, or 2.6%, to $5.52 in early afternoon trading on the New York Stock Exchange.
I realize I should have titled the post "Tesla gets Fed $$$" as in Federal monies, not fed like with a spoon.
Politics aside, I still don't like any of this. Washington is trying to force upon the buying public an "alternative" that while it has its merits, is at present not even close to competitive in function or cost/pricing. Subsidizing one alternative with other people's funds will not correct what the market deems a better (or cheaper, more useful, etc.) product.
Politics aside, I still don't like any of this. Washington is trying to force upon the buying public an "alternative" that while it has its merits, is at present not even close to competitive in function or cost/pricing. Subsidizing one alternative with other people's funds will not correct what the market deems a better (or cheaper, more useful, etc.) product.
S592R
GT Owner
- Dec 3, 2006
- 2,800
This is not so much a political issue as it is a proper diligence issue. Tesla has nothing in the end of dealers (very few at best ) so service and support past the sale will be minimal. It really does not have any revolutionary technology that will change the way people motivate.They lack manufacturing capability en mass and refuse to venture with a company that does. Their initial business model was to make a go of it on a 100k plus two seater (good car by all owner reviews ... for what it is) But there seems to be a bit of (I dont even have a word for it) when it comes to term management decision processes.
The clear difference in business would be the Fisker. Focus on a sedan, (high priced but obtainable) make it viable to drive distance, couple with a known manufacturer to ensure delivery and quality control. Develop dealership network BEFORE you plan delivery.
Not saying we should fund FISKER but .... the thought process behind the financial review would be infinitely more sound.
Glad to read that FORD secured good funding to realign assets without selling its soul. I hope they bring an S-MAX type vehicle to the USA. I'd buy one tomorrow if they'd let me place an order.
Please read the above as neutral ... IE non-political .... just wondering who is really deciding what gets funded and what protocols are being used.
Regarding governmental intrusion in the auto industry. Bantam invented the JEEP... the government gave it to Willy's Overland and Ford ... then LET Bantam make the trailers for it. :bored:thumbsdow:thumbsdow:thumbsdow No comment on the current state of affairs.
The clear difference in business would be the Fisker. Focus on a sedan, (high priced but obtainable) make it viable to drive distance, couple with a known manufacturer to ensure delivery and quality control. Develop dealership network BEFORE you plan delivery.
Not saying we should fund FISKER but .... the thought process behind the financial review would be infinitely more sound.
Glad to read that FORD secured good funding to realign assets without selling its soul. I hope they bring an S-MAX type vehicle to the USA. I'd buy one tomorrow if they'd let me place an order.
Please read the above as neutral ... IE non-political .... just wondering who is really deciding what gets funded and what protocols are being used.
Regarding governmental intrusion in the auto industry. Bantam invented the JEEP... the government gave it to Willy's Overland and Ford ... then LET Bantam make the trailers for it. :bored:thumbsdow:thumbsdow:thumbsdow No comment on the current state of affairs.