Park East Capital- US carmaker Ford have been given a $5.9 billion government loan to develop and build fuel-efficient cars.
This comes on top of the billions the US government has already pumped into the car industry.
With all the money the government has spent over the last year keeping the car industry afloat it wants to see change in the industry. The main core of that change is to develop the industry in to a much greener one. Explains Park East Capital senior economist.
This is the first time Ford has been given money by the US government, and it is entitled to it under new proposals by Obama.
Other car manufacturers who will receive money as well are Nissan Motor Co Ltd and Tesla Motors Inc. Tesla is a start-up firm that builds electric sports cars, the US government is keen to support such new an innovative green companies such as Tesla.
US energy secretary Steven Chu said, By supporting key technologies and sound business plans, we can jump-start the production of fuel-efficient vehicles in America. 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
Park East Capital analyst explains that one of the reasons the US has pumped so much money into the car industry is so that it can be at the forefront of the green revolution that Obama clearly wants. This revolution will create a real sustainable and strong economy in the future.
