Ford to receive loan guarantee
- Source: Shanghai Daily
- [09:05 August 06 2010]
- Comments
The United States Export-Import Bank was Thursday due to unveil a loan guarantee for Ford Motor Co that will finance $3.1 billion in sales of cars and trucks to customers in Canada and Mexico, a White House official said.
The announcement comes as President Barack Obama visits his home town of Chicago to tour a Ford assembly plant in an effort to highlight the US auto industry's export potential and his administration's role in revitalizing the sector.
The bank's loan guarantee will cover more than 200,000 Ford vehicle export sales, representing 15 percent of the company's 2009 production, the official said.
"The Private Export Funding Corporation will provide the funding for the revolving $250 million loan backed by Ex-Im's guarantee," the official said. "The loan, fees and interest will be paid off in one year."
Plants in Illinois, Michigan, Missouri, Kentucky and Ohio will manufacture the vehicles.
Last week Obama visited General Motors Co. and Chrysler plants in Detroit.
