Chu: $1.4 billion Nissan loan (to help finance Leaf) is a done deal

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Great news - Nissan needed this badly (I hope they spend a few million improving its curb appeal).



WASHINGTON, Jan. 28 /PRNewswire-FirstCall/ -- Today, Secretary of Energy Steven Chu announced that the Department of Energy has closed a $1.4 billion loan agreement with Nissan North America, Inc. The loan will support the modification of Nissan's Smyrna, Tenn., manufacturing plant to produce the Nissan LEAF, a zero-emission, all-electric vehicle, and the lithium-ion battery packs to power them.

The loan, which originated through the Department's loan guarantee program office, was issued as part of the Advanced Technology Vehicles Manufacturing Loan Program, a $25 billion program authorized by Congress as part of the Energy Independence and Security Act of 2007. The program is designed to accelerate the development of vehicles and technologies that increase U.S. energy independence, create cleaner means of transportation and stimulate the American economy. The loan was finalized after a rigorous financial and technical qualification process.

http://green.autoblog.com/2010/01/28/dc-2010-doe-secretary-chu-announces/

[amborin]

1. non-union Smyrna

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2. Update - Nissan TURNED DOWN $200 million of the original $1.6 billion

"Since we applied for the loan in late 2008, we have better refined the project costs and identified process efficiencies. As a result, the project costs will be less than originally anticipated, although the project itself and the battery and vehicle capacity remain unchanged. The loan amount was reduced at our request."

http://green.autoblog.com/2010/01/29/doe-reduced-loan-total-for-leaf-electric-vehicle-at-nissans-req/

:wow:

[kristopher]

3. This level of investment is going to pay off big time...

It's especially pleasing in light of your other post about the rate of price decline for batteries.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x228049

This is a graph of the "medium" forecast by EPRI for PHEV penetration that is based on the rate of price decline similar to that referenced in the National Academies study. I'll just leave to the imagination what reaching 2020 pricing by 2012 means to the rate of penetration and how that, in turn will affect further investment.