US Provides Loans For Electric Cars – Will The UK Realise This Is A Good Idea?

In a heartening bit of stimulus, the US has given Ford, Nissan and Tesla billions in cheap loans to fund the development and manufacture of fuel-efficient vehicles. The companies are receiving $5.9bn, $1.6bn and $465m respectively.

Ford is spending its on making 13 big names like the Focus and Mustang more fuel efficient, while Nissan is spending it on making one of its plants ready to manufacture its upcoming electric family car. Tesla are less well known on these shores – they make a “roadster” that was apparently designed by Barbie and Ken to ferry them to a volleyball party, but their new sedan, the Model S pictured above, is actually pretty desirable. It’ll use its loan to build a manufacturing plant for the new machine. It’s a 2003 startup that has only delivered 500 vehicles, and has some niggling question marks over its business model; nevertheless it’s set to shift into profitability next month, and is already 10% owned by Daimler, with potentially more to follow. Way to go, you little tyke! Even more satisfying for them is to be deemed “financially viable” and therefore worth investing in, while GM and Chrysler have been left on the naughty step and denied these loans. 

It all makes the UK government’s pledge of £250m towards the entire electric car industry – vehicles and infrastructure – seem pretty pathetic. I know it’s not easy to push through more debt at the moment, but the damage would be offset by the gains, both financial and political. The manufacturing industries are in need of some real, tangible support, Labour need votes in their heartlands – isn’t this a no-brainer? A little incentivising for Opel, Jaguar et al now could mean an ongoing manufacturing industry for years to come.

And let’s not forget our own Teslas, the small UK car startups. Tesla’s exponential rise can be attibuted to creating a sunshine-friendly, environmentally-friendly vehicle in a sunny, environmentally-aware part of America; the UK government should see the potential for things like Riversimple, who make Smart-like city runarounds. Let’s get into this industry before the rest of Europe gets there first.

Posted by Ben Beaumont-Thomas in Green Rush | June 24, 2009 11:07AM |