Ford Motor Co. will receive $5.9 billion in federal low-interest loans to improve the fuel efficiency of its lineup and develop alternative power vehicles, Bloomberg News reported.

Ford said it will use the money on its electric vehicle program and to further development of direct-injection gasoline engines, Bloomberg said.

Some of the money will be spent to convert Ford factories for other uses. In particular, the company’s Wayne, Mich. plant, which formerly produced sport utility vehicles, will manufacture the Focus passenger car. Ford also has plans to offer an electric version of the car.

On the commercial side, Ford is planning to introduce an electric version of the Transit Connect small van that is being imported to the U.S. The van currently features a four-cylinder gas engine.

Ford must begin repaying the loans in 2012, Bloomberg said.

Nissan Motor Co. and Tesla Motors also won financing under the U.S. Energy Department program, which is separate from funding that is being provided to bankrupt automakers General Motors Corp. and Chrysler Group LLC.
Source: Transport Topics