Associated Press 
In an announcement to day - Energy Secretary Steven Chu said the three automakers would be the first beneficiaries of a $25 billion fund to develop fuel-efficient vehicles.
O000uch... General Motors Corp. requested $10.3 billion in loans from the energy program, while Chrysler Group LLC has asked for $6 billion... Yet Energy officials have said the loans could only go to “financially viable” companies, preventing GM and Chrysler from qualifying for the first round of loans.
The loans were designed to help auto manufacturers meet new fuel-efficiency standards of at least 35 mpg by 2020, a 40 percent increase over current standards.
“These loans will help the auto industry meet and even exceed the president’s tough fuel standards,” Chu said at Ford’s Research and Innovation Center. “This means the most fuel-efficient cars in the world must be made right here in America.”
Read full from MSN
Haase Comments:
Since the 1990's we have had the ability to make nice 70 mpg vehicles that are fast, safe and affordable (Examples below or search blog for 100's more).
However, we have decided once again to give billion dollar companies, billions more to maintain 'status quo'.
Now that we have floated these automakers billions more can they just bring the existing 50mpg* vehicles they 'currently' manufacture to U.S. show rooms*?
But Tesla??? Ford and Nissan at least have dozens of projects 'ready for primetime'. By the time Tesla is ready, peak problems will be solved by nearly every other big player in the field who already has 'done that and been there' with electric cars.
And giving Nissan and ford money to go against Tesla is like giving Coke and Pepsi money to go against TAB.
*Examples (sorry they are painful but necessary)
Fords 100 year old electric car tech is new
$7,000 builds you a 70 mpg 0-60 in 7 sec...
70mpg was possible in 1995
The 65 mpg Ford the U.S. Can't Have
60 mpg American made ' Best Cars For The Environment'
We can already have 35mpg trucks...how about 50mpg!
Full electric cars starting at $1,000 and coming to a Costco or Wal-Mart
5 Passenger 62mpg Ford Fiesta - Not yours!
110 mpg safe family car in 1984
YEP... Another GM 60 MPG Vehicle We Don't Have...
VW - 60 MPG, 90% Emissions Reduction 60 mpg anyone can do for $400
The 204hp - 45mpg Engine we all can have (BMW)
40 MPG BioDiesel MiniVan you can not buy in USA!
VW Polo 73 mpg will not come to U.S.
General Motors (GM) 200 mpg lean machine
Non-Hybrid Combined 70 mpg (Not Yours in U.S.)
3 Out of 4 Americans want Clean Cars