Sign up to The Irish Times Archive (1859 - 2008)My Account »

FIRST THE gain, now the pain. The US auto industry received a $17.4 billion bailout in December from the outgoing US administration and has its sights set on further financial support from the Obama administration. In return they have committed to clean up environmentally. President Obama is clearly determined to enforce that promise.

The US Congress has already passed legislation to increase average fuel consumption in the US to 35 miles per gallon (American measurements) by 2020. The current standard is 27.5mpg for passenger cars and 22.5mpg for pick-ups and SUVs. Such an improvement may seem relatively minor, but in the last 10 years the average fuel economy for cars on the US market has improved by just 2.6mpg.