SMYRNA, Tenn. — A $1.6 billion federal loan for Nissan North America Inc. to build a zero-emissions electric car and battery packs to power them could eventually create more than 1,000 new jobs at the automaker's assembly complex in Tennessee.
The vice president of manufacturing for Nissan's assembly plant at Smyrna and powertrain plant at Decherd, Susan Brennan, said Tuesday that if existing sales volumes hold and depending on demand, there could eventually be up to 1,000 jobs added at a new plant that will make lithium-ion battery packs.
Construction of that battery plant in Smyrna is expected to start later this year.
Brennan said Nissan's assembly plant can already accommodate production of the electric car starting in 2012 and that could involve a few hundred additional jobs.
Below is a press release from Tennessee congressmen
Alexander, Corker, Gordon Say Nissan Announcement Puts Tennessee at the Forefront of America’s Automotive and Energy Future
Nissan anticipates increase of 1,300 jobs in Smyrna when full production is reached
WASHINGTON – U.S. Senators Lamar Alexander (R-Tenn.) and Bob Corker (R-Tenn.) and U.S. Representative Bart Gordon (D-Tenn.6th) said today that Nissan’s award of a $1.6 billion Department of Energy loan to produce electric cars and battery packs at its manufacturing complex in Smyrna, Tennessee, is outstanding news both for the local economy and for Tennessee’s position as a leader in America’s automotive and energy future.
“This announcement puts Nissan and Tennessee at the center of building electric cars in America,” said Alexander. “We can electrify half our cars and trucks if we plug them in at night, without building one new power plant because of all the unused nighttime electricity we have. This is the single best way to reduce dependence on foreign oil, clean the air, and keep the cost of fuel low.”
“This announcement is really the nexus of what we’ve tried to create in Tennessee: good paying jobs that move our state and country ahead and help us become more energy secure. This means 1,300 jobs for the area, it secures Tennessee’s position as a leader in America’s energy future, and it continues to tell the world that Tennessee is THE place to do business, especially automotive business,” said Corker, a member of the Senate Energy Committee.
“This DOE loan is great news for Tennessee. After 26 years of producing cars in Smyrna, this loan will allow Nissan to refurbish and retool an existing factory and construct a new battery plant to build affordable all-electric vehicles,” said Gordon. “It will create 1,300 new jobs and position Tennessee to be a leader in establishing our nation's energy independence - the Smyrna-produced cars will use no gasoline. This loan will also provide new opportunities for Nissan and Oak Ridge National Laboratory to collaborate and ensure that our country is on the leading edge of global technological competitiveness.”
The U.S. Department of Energy (DOE) announcement states:
“Nissan will receive $1.6 billion to produce electric cars and battery packs at its manufacturing complex in Smyrna, Tennessee. The loan will aid in the construction of a new battery plant and modifications to the existing assembly facility. These fully electric cars are an important milestone for vehicles produced in the United States by a major international automaker. These cars are energy efficient, using electricity at a gasoline-equivalent rate of more than 350 mpg. This new state of the art facility is a notable effort by a major automaker with well-established US operations to produce its most advanced vehicles and lithium-ion batteries. Nissan aims to manufacture a cost-competitive all-electric car, overcoming a major obstacle to widespread adoption of pure electric vehicles. Nissan will offer electric vehicles to fleet and retail customers, and plans to ramp up production capacity in Smyrna up to 150,000 vehicles annually. Nissan anticipates the project may result in an increase of up to 1,300 jobs in Smyrna when full production is reached.”
DOE also announced today that $5.9 billion will go to Ford Motor Company to transform factories across Illinois, Kentucky, Michigan, Missouri, and Ohio to produce 13 more fuel-efficient models and $465 million will go to Tesla Motors to manufacture electric drive trains and electric vehicles in California.
These are the first conditional loan commitments reached as part of DOE’s Advanced Technology Vehicles Manufacturing program, also referred to as “Section 136” funding. Section 136, passed as part of the Energy Independence and Security Act of 2007, provides loans to eligible auto manufacturers and component suppliers for reequipping, expanding, or establishing a manufacturing facility in the U.S. to produce advanced technology vehicles or parts for such vehicles.
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