US auto giants go green for bailout cash

Beleaguered US auto makers GM, Ford and Chrysler have all included green initiatives as part of their requests for federal bailout last week.

There was widespread fury when the chief executives headed to their first bailout meeting in private jets, and refused to take pay cuts – they travelled to a second bailout meeting in hybrid cars.

The chief executives told the Senate Banking Committee they need $34bn (£23bn) in loans or credit if they were going to avoid going bust in the next year.

Fluctuating fuel prices and a squeeze on credit have prevented US citizens from buying new cars.

GM says it will invest $2.9bn in alternative fuels and offer 15 hybrid models by 2012.

"GM expects to become a significant creator of green jobs in the US, as well as helping suppliers and dealers transform the US economy," said chief executive G Richard Wagoner.

Ford said it will invest $14bn in advanced technologies during the next seven years and that it will introduce a range of battery-powered vehicles over the next three years. It also promised to improve the fuel economy of its fleet at an average of 14 per cent for 2009 models, 26 per cent for 2012 models and 36 per cent for 2015 models compared to 2005 models.

"Ford is committed to building a sustainable future for the benefit of all Americans, and we believe Ford is on the right path to achieve this vision," said chief executive Alan Mulally.

Chrysler said it will introduce its first full-function electric-drive model in two years and will produce more than 500,000 electric vehicles by 2013. Seventy-three per cent of the 2009 models will have better fuel efficiency than previous models.

"Chrysler’s long-range product plan is robust, realistic and green," said chief executive Robert Nardelli.

And the chief executives said they would work under the supervision of a federal oversight board as a condition of any aid, meaning the government could hold them to these commitments.

In November, seven state attorney generals wrote to speaker of the house Nancy Pelosi urging them to require the Big Three automakers to produce more fuel-efficient cars and cut GHG emissions in order to receive any federal aid.

The committee will now consider the carmakers' case for aid.