This week, US President Barack Obama’s administration addressed the need to cut oil use and tightened automotive fuel economy rules – the corporate average fuel economy, or CAFE, standards. The move follows last week’s action by the federal government to push Chrysler into a deal designed to give it access to Fiat’s fuel-efficient technology.

Washington also directed Chrysler not to spend money on marketing over the next few months because it has the wrong product mix. At the same time, the administration is attaching conditions to the life-support General Motors needs, aimed at influencing its product mix towards smaller, more economical cars with expensive new technology.