Factbox: Key components of U.S. energy spending bill (15/10/09)

The US Senate has given the green light to a $33.5 billion injection to fund energy and water programmes for the 2010 budget year.

Many of the components will have a direct impact on the country's auto industry, such as a $220 million grant to improve output of biofuels such as cellulosic ethanol and biodiesel.

In addition, $311 million will be pledged to help production of cleaner, more fuel-efficient engines, while $174 million will be spent on developing hydrogen and fuel cell technologies.

Congress OKs hydrogen funds (16/10/09)

The approval of the hydrogen funding represents a major turnaround after the government cut the original proposed sum of $169 million in half in May.

At the time, Energy Secretary Steven Chu claimed that the money would be better served elsewhere because hydrogen fuel strategies were not viable in the short term.

Columbia Mayor Bob Coble, one of the technology's most prominent supporters, welcomed the revised stance on the issue by President Barack Obama's administration.

"Congress' restoration of hydrogen funding validates our belief that hydrogen has a bright future as an alternative energy source for our country," he told the State.

US automakers welcome proposed fuel economy rules (21/10/09)

The US government has also announced plans to tighten fuel economy and emissions standards in the country.

Under the terms of the legislation, all automakers must ensure that the average fuel economy across their respective fleets is no lower than 35.5mpg by 2016.

In addition, the passenger car standard would be lifted from 33.6mpg in 2012 to 38mpg, with light trucks being required to improve from 25mpg to 28.3mpg.

The changes were welcomed by automakers such as Toyota, Ford, General Motors, Chrysler, Hyundai, Nissan and Volkswagen at a recent public hearing with lawmakers in Detroit.

SMMT revises car sales forecast upwards by 100,000 (23/10/09)

Moving to the UK, the Society of Motor Manufacturers and Traders (SMMT) has lifted its 2009 estimate for auto sales in the country by 100,000 to 1.928 million units.

The revision marks a considerable turnaround from the body, which predicted at one stage this year that only 1.658 million vehicles would be sold.

A scrappage scheme introduced by the government is the main motivating factor behind the move, although the SMMT stressed that the recovery is "fragile", the Independent reports.

Spain extends car subsidies this year and next (24/10/09)

Meanwhile, the Spanish government has confirmed that it will extend its own incentive scheme for car buyers, known as Plan2000E, for both this year and 2010.

An additional injection of €40 million is expected to be made available on top of the original €200 million commitment and should cover the purchase of 80,000 vehicles.

"With these two decisions, to extend and renew Plan 2000E, the government confirms its commitment to the strategic automobile industry," said Industry Minister Miguel Sebastian, according to Reuters.

China's auto output hits 10m mark (20/10/09)

New figures released last month suggested that auto production in China since the start of the year has hit ten million units.

According to the China Association of Automobile Manufacturers, the country is now the third to pass this level, after the US and Japan.

Buyers have benefited from a range of tax breaks so far this year, including the purchase rate on vehicles with engines under 1.6 litres being slashed from ten per cent to five per cent.

At Tokyo Auto Show, Hybrids and Electrics Dominate (20/10/09)

Toyota has unveiled a new hybrid-only model, known as the Sai, and intends to sell it at a rate of 3,000 per month in Japan from December onwards.

The news was divulged at the recent Tokyo Motor Show, at which only three companies outside of Japan were in attendance, mainly due to a widespread belief that China is a more significant market for the future of the auto industry.

While Nissan is planning to launch its Leaf electric car next year, Honda, the country's second-biggest automaker, is caught between hydrogen fuel cell and electric cars, according to the New York Times.

China's SAIC Motor Q3 net up 9 fold, outlook positive (30/10/09)

Finally, SAIC Motor Corporation, which is the largest automaker in China, revealed that its sales in the first nine months of the year increased by 47.7 per cent.

The company sold 1.95 million vehicles in the period - in comparison to 1.83 million for 2008 as a whole - while sales of its own-brand offerings rose by 186 per cent to over 65,000 units.

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