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Winners of the Auto Loans

C-Net's Cartech Blog posted the results of some loan awards by the federal government that I thought were note-worthy.  The Advanced Technology Vehicles Manufacturing Loan Program, a loan program created by the federal government to promote the next fuel efficient cars, were awarded three weeks ago.  The car companies included two household names and one up and coming American car company.

First off, Ford Motors received a $5.9 billion dollar loan to advance new fuel efficiency initiatives.  This should help with the planned launch of an electric vehicle by 2011.

Tesla Sports Sedan

Second, Nissan received $1.6 billion to retrofit a Tennessee plant for production of electric vehicles.  Nissan promises to outshine Ford by releasing their lithium ion powered vehicle in 2010.

Lastly, Tesla, the all electric vehicle maker, received a $465 million loan package from the program.  This loan was to help get on line the production site of the new Model S Tesla.  This new Tesla will be a sedan and half the price of the current roadster.

When I saw that these three companies received the loans I was pleased.  First, none of these companies needed a bailout and only required loans to continue electrification plans.  Second, it shows insight by all three companies into the future of the automotive industry in America.  In this country, I believe, we will see widespread adoption of electrical cars which will reduce gasoline consumption.  I think that this private investment using corporate funds as loans is a great model and probably much more efficient usage then some of the other stimulus.  This is just my thoughts, tell me what yours are.