Ford Applies For $11 Billion In Federal Loans For Retooling

General Motors Corp. and Chrysler LLC are blocked -- at least for now -- from receiving any part of $25 billion in loans for retooling factories that federal officials will begin lending in a matter of weeks.

The U.S. Department of Energy has $25 billion in loans meant to boost production of fuel-efficient vehicles and parts for making them. So far, automakers and parts suppliers have submitted $44.6 billion in requests, including $10.3 billion from GM and $6 billion from Chrysler.

But under the laws governing the loan program, companies must be "financially viable" without the loans to receive them. The Obama administration ruled last week that neither GM nor Chrysler met that standard, giving GM 60 days to rework its restructuring plans and Chrysler 30 days to conclude a partnership with Fiat SpA or face bankruptcy.