16 August 2009 | Posted inBlog News & Updates
Advanced Technology Loans
I just read this little tid-bit of info about the US Fed. Government’s Advanced Technology Loans (by the DOE) to develop more fuel efficient cars and this fun little breakdown from GOOD Magazine.
$5.9 billion sounds like a lot, but when you take into account that Ford has Ford, Lincoln, Mercury, and Volvo and each of those companies has its own models, the money breaks down into a ‘not so huge’ amount.
Ford has 18 models, Mercury has 5 models, Lincoln has 6 models, Volvo has 10 models. In total, that is 39 ‘types of cars’ from one company. If Ford were to ‘Green-up’ all of its models, that’s approximatley $151 million to invest per model.
This is from the DOE website: ” The FY09 Continuing Resolution authorized up to $25 billion in direct loans to eligible applicants for the costs of reequipping, expanding, and establishing manufacturing facilities in the U.S. to produce advanced technology vehicles, and components for such vehicles. These vehicles must provide meaningful improvements in fuel economy performance. “
When you look at Tesla’s 2 models ($232 million per model) , next to Ford’s 39 ($151 million per model) and add on to that a track record of innovation, don’t be surprised if the Tesla dollars travel A LOT further into making the DOE’s dollars a real investment for Americans.
What do you think?
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I agree, John – the Tesla dollars will travel MUCH futher, I’m sure. As much as I’d love to be patriotic and support the huge amount poured into Ford, I find a hard time doing it. Seems to me that Toyota and Honda are so far ahead of the game in creating sustainable auto platforms that even $5.9 billion might be too little, too late. I, for one, just can’t wait to see some Tesla’s out on the street – even though we all know the production car is going to look about half as sweet as their prototypes.