Loaning $9.2 Billion of Your Tax Dollars to Ford

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According to the New York Times, Ford Motor and its battery manufacturing partner will receive a $9.2 billion loan to build three battery factories in Kentucky and Tennessee from the Department of Energy.

Questions:

  1. How many people will be employed?
  2. What is the Biden Administration goal for electric cars?
  3. How should the loan be recorded in the financial statements?
  4. What industry does Ford expect the newly employed people to transition from?
  5. When or if will you get an electric vehicle? Discuss.

Source:

Ewing, J. and C. Krauss (2023). Ford’s Battery Joint Venture to Get $9.2 Billion Government Loan, The New York Times, June 23 (Retrievable online at https://www.nytimes.com/2023/06/22/business/energy-environment/ford-battery-plants-loan.html)