New Technology

Ford Motor Co will receive nearly $5.9 billion in U.S. government loans to build fuel-efficient vehicles as the Obama administration deepened its commitment to reshaping the cash-strapped auto industry.

Japan's Nissan Motor Co Ltd will receive $1.6 billion and start-up Tesla Motors Inc will receive $465 million in low-cost loans to build all-electric cars in the first wave of financing from an Energy Department program intended to offset the cost meeting sharply higher new fuel economy standards.

"By supporting key technologies and sound business plans, we can jump-start the production of fuel-efficient vehicles in America," Energy Secretary Steven Chu said at an event at Ford's sprawling engineering and product development campus.

"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.

The Energy Department has $17 billion remaining in funding under a program first authorized by Congress in 2007. Chu said the agency would work quickly to approve further loans in the coming months to other auto companies.

The announcement of the first round of funding at Ford represented a win for the automaker, the United Auto Workers union and Michigan's congressional delegation after an intense lobbying effort to get the long-stalled funding approved.

One of the conditions of receiving the subsidized loans was a determination of viability. That ruled out Ford's rivals Chrysler and General Motors Corp since they have been pushed through a federally funded bankruptcy process.