“Everybody, from labor to management to creditors to shareholders, giving something up,” stressed Obama. He thinks that shared sacrifice among every industry including the car industry would have to be considered.

Ironic as it may sound, Obama has his own reasons. Automakers would have to wait and see what happens because this may mean that tougher conditions on federal loans will be imposed in his administration. To backtrack in Bush’s administration, he allowed automakers to get a specific loan so that they can keep up in spite of the recession. These loans had strict conditions that involved time tables as well.

GM and Chrysler was able to file a loan. Former President Bush approved a staggering $17.4 billion while the GMAC Financial Services offered $6 billion on top of it. With these loans, the manufacturers were required to present a financial plan that will encompass the days between the start to the 17th of February.

Obama isn’t providing a solution to the overwhelming financial crisis in US. What he’s providing is a call to help one another. Quite a charismatic approach right there. This may work with the public but we never know with the business tycoons. After all, all he can do is to really call for unified effort.

Sources say that the federal funds will be used to provide loan grants to automotive suppliers, auto finance companies and automakers.

The first $350 billion funds were released to fund emergency loans to automotive companies such as Chrysler LLC an General Motors.

The second round of $350 billion was released after aids to new President Barack Obama ensured that the funds will strictly be controlled, insiders say.

Obama designee National Economic Council Chairman, Larry Summers, said in a letter that the second $350 billion funds will not be allocated to industrial policies. He also said that the automobile companies will only receive the additional aid provided that they have a concrete reconstruction for long-term viability.

The releasing of the second bailout funds was met with uncertainty as criticism of how the Bush administration handled the first $350 billion arose. Reports have said that the first funds were used in bank investments instead.

Part of the second federal funding is set to be used for a loan to Ford Motor Corporation. Although the pioneering automobile company has yet to ask for an immediately loan, it has already expressed interest in a $9 billion loan should the market conditions prove to be worse.

Obama, citing that the first release of funds lack transparency and accountability, said in a statement that he will provide loans instead to small businesses. He said that to keep the faith of American tax payers, it is necessary that they see where their taxes go.

During a recent speech engagement in front of the joint session of the U.S. Congress, President Barack Obama holds accountable the car manufacturers for their bad practices that pushed them to the brink while fighting the current recession.

The US President promised though to help them regain their grounds to be able to compete again and win the auto industry. Obama also pinpointed the millions of jobs depending on car manufacturing.

The Obama led government is taking actions to help revive the ailing car industry. The US President backed up the plans of former president George W. Bush in pushing for the emergency loans amounting to $17.4 billion to GM and Chrysler LLC.

The federal government has activated several taskforce to study the restructuring plans of the car manufacturers which are asking for an additional loan of $21.6 billion. They are also looking into the call for help coming from suppliers amounting to $18.5 billion.

During this first appearance before the Congress, Obama presents the focus of his budget. The president explained that the government cannot attempt to solve every problem but would rather deal on the most critical issues on health care, energy, and education.

Obama foresees renewable energy as the dictating force of the future. He looks at China as one of the current stalwarts to make their economy energy efficient. The 44th US president also cites the US as the front runner of solar energy but is now falling behind Japan and Germany. He also mentioned hybrid vehicles made by Americans but running on Korean-made batteries.

The speech of the president paints the picture of reality and at the same time re-enkindles hope for everyone including the auto manufacturing industry.

NASA (National Aeronautic Space Administration) worked with 11 research groups to test two synthetic fuels derived from natural gas and gasified coal. These gases were extracted using the Fischer Tropsch process. The research groups involved in this project included the US Department of Defense, the Federal Aviation Administration, and the Environmental Protection Agency.

These tests are being conducted at the NASA Dryden Flight Research Center in California. The main point of the research is to test the emission levels and performance of both alternative fuels.

It has previously been studied that synthetic fuels emit fewer harmful particles compared to standard jet fuel. This research, aside from looking into alternative jet fuels once Petroleum runs out, also considers environmental factors.

NASA also reports that this is the first time that they’re testing 100% and 50% blends. Previous tests on alternative jet fuels have been spent on blends with lower natural gas content.

The NASA tests are being run on DC-8. This engine was chosen because its performance is well documented and understood by the team. Other tests on synthetic fuels have been conducted by other companies, but none of the results have been published.

This NASA research results, on the other hand, will be put on public domain very soon. These tests are funded by the NASA Fundamental Aeronautics Program.

He further discloses that Pontiac will experience significant production cuts while the Saturn line will have a different loom. GM is also collaborating with the Swedish government to help the Saab brand. Around 75% of the Saab sales is in Europe so the plan will not be a US approach.

The company will push with its plans of heavily investing on the Buick brand in China. This move will have a positive effect on the brand in the United States.

The four core brands of the auto maker comprise 83% of its sales in the United States in 2008.

The plan of the GM group revolves around the price of oil being around $130-$160 per barrel. The company forecasts oil prices to be at the level of $53 per barrel in 2009. The low oil price will be a big challenge for their plug-in vehicle, the Chevrolet Volt.

During a speech the GM COO looked on hind sight how the global financial crisis affected their business. GM needs the next chunk of government aid of $13.4 billion to survive or it will be a disastrous out of cash situation by the end of March.

The first installment for the bailout was given end of December 2008 amounting to $4 billion. The stakeholders are studying the viability plan it forwarded to the US Congress last December 2.

Another major concern for GM is re-grooming itself to look good to the public. These add to the financial concerns and development of new technologies.

It was a picture of bad going to worse going worst for major players in the car industry. GM had its darkest dropped in sales since 1959 while Ford had their most horrible performance since 1961.

Toyota’s sale was down by more than 30 months for two consecutive months so is Nissan’s which was struggling for 4 consecutive months. Chrysler sold 53.1% lower compared to 2007.

Year over year, the December total for the US auto industry was lower by 35.6% despite car manufacturers throwing in incentives to close deals. The December figure marked the fourth month where the drop in sales went over 25%. The car manufacturing sector is one of the hardest hit by the longest recession since the 1980’s. The federal government is still thinking of throwing a life line for GM and Chrysler.

The average incentive offered by car makers is around $2902 per vehicle last December. Year over year, this is bigger by 18% and abut 8% more generous than what they gave last November.

Car sales as it lowest, predicted by experts just to hit the 10 million mark. November was at 10.3 million which is the lowest in the last 26 years. The December statistics show an insignificant jump to 10.4 million.

Despite the bail outs, consumer confidence is low amid a future that is very difficult to forecast.