Ford Motors Inc., the only Detroit automaker who did not receive a federal bailout loan last year, is now amongst the first three companies to get a loan from the government aimed at accelerating the development of more fuel efficient cars. Nissan and Tesla Motors are the other two companies who will be receiving loans for this purpose. Ford will be using their loan to retool some of its Midwest factories.

The $5.9 billion loan Ford was granted was only about half of what they initially requested, and will go to retool 11 Midwest factories. The money will help to make 13 of its models more efficient. Ford is planning to sell four models of electric vehicles by 2012.

Japanese car manufacturer Nissan will also receive $1.6 billion to overhaul its Smyrna, Tenn. factory, where it plans to build electric vehicles. Tesla Motors, a California based company, will receive $465 million to make electric vehicles and drive trains.

General Motors and Chrysler are amongst numerous other applicants that are seeking financing from the Advanced Technology Vehicles Manufacturing Loan Program. The program was created in 2007 by Congress to help carmakers meet more stringent fuel-economy standards. GM and Chrysler are not eligible for first round financing due to their bankruptcies, but are expected to gain approval in later rounds.

Lawmakers from states that producing autos are also pushing to double the amount of the loan program from $25 billion to $50 billion.

In a statement, President Barack Obama said that the loans would "create good jobs and help the auto industry to meet and even exceed the tough fuel economy standards we’ve set, while helping us to regain our competitive edge in the world market."