US government bailouts are big news at the moment, but while money for the banks have attracted all the headlines, significant money for the ailing American car industry have been less well publicised. Congress recently approved $25 billion in government loans for the US auto industry, designed to encourage a broader line-up of hybrid vehicles, plug-in electric cars and a greater emphasis on fuel-efficient engines. The move comes after intense lobbying from General Motors, Ford and Chrysler.

The US government wants to see cars achieving an average of at least 35 miles per gallon by 2020, something which may not sound too ambitious to fuel conscious Europeans, but would represent a 40 % increase in American fuel efficiency. The car companies expect to receive the loans at preferential government rates, which could save them up to $1 billion in interest. The massive car companies are seen as bad risks by world bankers, who would otherwise charge them double-digit interest rates.