Congress Outlines $25B Green Car Rescue

Congress Outlines $25B Green Car Rescue

The ailing US auto industry could soon receive a major shot in the arm in the form of $25bn in low interest loans from the federal government, designed to help manufacturers meet new fuel efficiency standards and accelerate the development of low carbon vehicles.

According to Reuters' reports, Congressional Democratic leaders have expressed their support for the proposal with House of Representative Speaker Nancy Pelosi describing the low interest loans package as "very important to our country".

Under the proposals, major manufacturers such as Ford, GM and Chrysler would be eligible for credit assistance as they seek to shift production from the gas-guzzling SUVs and trucks that have represented their cash cow for much of the last decade, to more vehicles capable of meeting recently introduced standards that require an improvement in fuel efficiency of 40 per cent by 2020.

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