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Nissan, Japan's third-largest automaker, is eligible for over $1.6 billion of the $25 billion preferential loan program that is expected to help strengthen its financial standing as the company prepares to launch its zero-emission electric vehicle in the United States and Japan in fiscal 2010.
Being granted to Ford is $5.9 billion of loans, the U.S. government said.
The provision of the loans will be carried out as President Barack Obama seeks to implement a "Green New Deal," which calls for shoring up the economy and creating jobs through priority investment in eco-friendly technologies.
Ford has avoided the fate of the other two of the Big Three U.S. automakers -- General Motors Corp. and Chrysler LLC -- which have filed for Chapter 11 bankruptcy protection.
Access to the U.S. government loans is expected to help Ford to rebuild operations battered by the global economic downturn.
The U.S. government has decided to offer part of the loans to Nissan, a foreign automaker, apparently to fend off accusations of protectionism, which have grown after it funneled huge sums of cash to rescue GM.
Nissan President Carlos Ghosn told reporters in Japan on Tuesday that the automaker intends to produce more than 100,000 units of electric vehicles at its U.S. plant in Tennessee.
Nissan is aiming to mass market them globally in 2012 as it seeks to close the gap in the race for fuel-efficient cars, which is currently being driven by the hybrid technologies of Toyota Motor Corp. and Honda Motor Co.
Ghosn, also chief executive of France's Renault SA, said that Nissan and Renault will each roll out three models of electric cars in different sizes in the future.
While Toyota and Honda did not apply for the loans, a source close to Toyota said there was some restraint as an offensive by Japanese automakers, which excel in green technology, has deepened the plight of U.S. competitors.
The U.S. government has rejected applications from GM and Chrysler for the loans as their financial bases are still shaky under government-led rehabilitation.
But a U.S. auto analyst said the government is trying to strike a balance by offering the loans to Ford since GM and Chrysler are likely to emerge leaner as they downsize their operations and unload debt under the government-backed reconstruction efforts.
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