DEARBORN, June 23, 2009 – Ford Motor Company, Nissan and Tesla Motors are the first automotive companies selected as partners in the U.S. Department of Energy's (DOE) Advanced Technology Vehicles Manufacturing Incentive Program.

DOE Secretary Steven Chu made the announcement Tuesday morning at Ford's Research and Innovation Center, adding that Ford had been approved for $5.9 billion in direct loans from the program to retool older plants to produce more fuel-efficient vehicles.  The news was greeted with a thunderous ovation from Ford employees who packed the building's atrium for the announcement along with media members, government officials and other dignitaries.     

Chu said the loans will help the auto industry meet more stringent fuel economy standards "while creating jobs, reduce our dependence on foreign oil and ensure American competiveness."

Ford President and CEO Alan Mulally said Ford was pleased to be among the first selected for the DOE's hi-tech, green program, a selection he credited to Ford's strength in technology and innovation.

"Our participation in the program will help us accelerate the development of advanced technologies that will deliver more fuel-efficient, cleaner vehicles to American consumers," Mulally explained, as about 30 Ford hourly and salaried employees sat behind him on stage.  "(This partnership)...will impact nearly all of our manufacturing facilities and thousands of employees here in the United States."

Michigan Governor Jennifer Granholm called it "the start of a new day for Michigan, in addition to a new day for Ford."

U.S. Senator Debbie Stabenaw of Michigan sees the cash infusion as critical to making advanced fuel-efficient technology available to millions.

"We're going to make (this technology) affordable for every middle-class American.  This is about reinventing the middle class of this country, and we're going to do it right here in Michigan," she said.

UAW Vice President Bob King praised the collaboration of all parties involved and stressed the potential broad impact of the loans. 

"(This money) will not only help UAW-Ford members, but will help the whole supplier industry, the dealer industry, healthcare.  The more dollars we keep in American manufacturing, the stronger America is," King said. 

Dave Cole, chairman of the Center for Automotive Research, called the DOE award critical to the transformation underway at Ford.

"The rapid move to the production of more fuel-efficient vehicles will require an enormous amount of money and this funding will jump start the effort at Ford,” Cole said.  It also reinforces the importance of the emerging partnership between the U.S. government and the auto industry."

Mulally said that Ford is committed to being the fuel economy leader and will invest nearly $14 billion in the United States during the next seven years on advanced technology vehicles.  Those products are expected to achieve annual fuel savings of 2.5 billion gallons by 2012.

The DOE's Advanced Technology Vehicles Manufacturing Incentive Program includes a total of $25 billion in funds for qualifying automakers and suppliers who manufacture products in the U.S.  Tuesday's loan announcement equals $8 billion, with Ford receiving the majority of the funds.

--Editor's note:  Today, U.S. Department of Energy Secretary Steven Chu announced that Ford has been approved for the Advanced Technology Vehicles Manufacturing Incentive Program. The following statement is attributable to Ford President and CEO Alan Mulally.

DEARBORN, Mich., June 23, 2009 – “Ford Motor Company is proud to be among the first automakers deemed by the government to be among the best companies with the best technologies in American manufacturing and fuel efficiency. This green partnership between Ford and the U.S. government will help accelerate the development of advanced technologies for even better fuel efficiency and emissions. Ford is absolutely committed to fuel economy leadership with every new model we introduce. In fact, we plan to invest nearly $14 billion in advanced technology vehicles in the next seven years. Our partnership with the Department of Energy also will help retool our U.S. plants more quickly to produce fuel efficient vehicles and help meet the new, rigorous fuel-economy requirements.”

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For more information, see the video and press release at right.