Ford Motor Co will receive a share of $25 billion in government loans designed to help automakers retool factories for making fuel-efficient cars, according to sources familiar with the decision by the Obama administration.
A Ford auto in the showroom at the Sill-TerHar
Motors Ford dealer in Broomfield, Colorado
Energy Secretary Steven Chu will make the announcement later Tuesday at an event at Ford headquarters in Dearborn, Michigan, the sources said.
Government and industry sources confirmed that Ford had qualified for the first tranche of financing, approved last year by Congress and the Bush administration.
The amount was not disclosed, but Ford had sought billions in its application, sources have said.
The Obama administration previously said it would draw down $10 billion in loans this year and award the balance in 2010. The loan program is intended to help carmakers meet stricter government fuel-efficiency targets by spurring development of advanced gasoline-electric hybrids, all-electric vehicles and other efficient technologies.
It had been long expected that Ford would be approved for assistance.
General Motors Corp and Chrysler applied for funding as well, but government officials have said any decisions on their bids would have to wait until their finances improve.
Chrysler emerged from bankruptcy earlier this month and is operating under an alliance with Italy's Fiat . GM is currently in bankruptcy.
Both GM and Chrysler have received billions in federal bailout money since January. The retooling money is only available to viable companies.
Ford has not asked for bailout assistance.
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