KEY POINTS:
Japanese carmaker Nissan has applied for US government financing to help it make electric vehicles and develop the advanced batteries that power them.
Nissan, which has announced plans to cut 20,000 jobs worldwide in response to declining sales blamed on recession, is the first Japanese carmaker to seek taxpayer-funded loans from the US to facilitate its US manufacturing plans.
Nissan said it plans to upgrade its Smyrna, Tennessee, assembly plant to build a new facility for battery production. It plans to have an electric car on the road in the US by 2010.
"We are committed to the vision of energy independence, environmental sustainability and the new energy economy, and we are hopeful that the US Department of Energy approves this loan request," the company said.
The loan programme approved by Congress in September last year was set up to help US carmakers make upgrades necessary for producing cars and trucks that can meet sharply higher fuel standards next decade.
General Motors, Ford and Chrysler have asked for nearly US$22 billion ($42 billion) in financing combined. GM plans to roll out its plug-in electric/hybrid Chevrolet Volt next year. Toyota, Ford and Chrysler all have electric car ambitions.
Energy Department loan eligibility requirements favour companies operating facilities older than 20 years, which gives US makers an edge in gaining retooling money. Nissan's Tennessee plant began operations in 1983.
So far, the Energy Department has received 75 applications and Nissan is among 26 that have cleared initial hurdles, the company said.
- AP
