By Kevin Krolicki
DEARBORN, Michigan (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 on Tuesday.
Japan's Nissan Motor Co Ltd will receive $1.6 billion, and start-up Tesla Motors Inc will receive $465 million.
Ford will receive the funds through 2011 to retool factories in Michigan, Ohio, Illinois, Kentucky and Missouri in order to produce 13 models, Energy Secretary Steven Chu said at Ford headquarters.
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, the company's chief executive, Alan Mulally, said.
The automaker hopes most of that financing will come from government loans.
The Energy Department said it plans additional loans over the next several months to automakers and suppliers.
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.
"By supporting key technologies and sound business plans, we can jumpstart the production of fuel-efficient vehicles in America," Chu said.
"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.
General Motors Corp and Chrysler Group applied for loans, but the program is only open to companies that are financially viable. Chrysler emerged from bankruptcy this month in an alliance with Fiat, while GM is currently in Chapter 11.
Ford shares were up 6 cents at $5.44 in midday trade on the New York Stock Exchange.
(Reporting by Kevin Krolicki, editing by John Wallace)
