The US government is attempting to push through new legislation which will provide financial incentives for buying plug-in vehicles, it has been reported.

The House of Representatives and the Senate have approved separate tax measures to provide consumers with tax credits in relation to the purchase of such vehicles.

Negotiators in Congress are expected to come to a decision in the next few days which will see the Senate offer $7,500 and the House extend $5,000.

The move is being seen as a crucial method of improving fuel economy through existing vehicles, while also easing the considerable time and expense currently being dedicated to new technologies.

Robert Wimmer, a Washington-based executive for Toyota, told Reuters: "If we double sales of a hybrid model, the cumulative fuel savings is greater than doubling its fuel economy with no change in sales volume."

In addition, automakers are also making alterations to improve efficiency, with fuel savings focused on conventional engines, better transmissions and advanced tyres.

The new legislation would form part of the government's proposed $25 billion loan for the US automotive industry to help it meet upcoming emissions targets.



Source:

U.S. aid for carmakers favors familiar ideas (26/09/08)
http://www.reuters.com/article/ousiv/idUSTRE48P8N120080926?sp=true