The American cars Obama wants

To get that bailout cash, the government wants some changes in GM and Chrysler’s line-up, but that change won’t be quick, easy or cheap.

NEW YORK (CNNMoney.com) — The Obama administration has made it clear: In order to get the billions of dollars of federal money that Chrysler and General Motors need to survive, they’ll need to build and sell more fuel efficient vehicles.

But even with many changes already underway due to stricter fuel economy regulations and public pressure, drivers won’t see new line-ups overnight, even if these companies get the funds they need.

Automakers have been working to meet CAFE standards put in place in late 2007 that require cars and trucks to get 35 miles per gallon by 2020. But as public pressure mounts to regulate greenhouse gas emissions, fuel economy requirements could get even stricter.

Kicking the gas guzzling habit

Any increase in fuel economy means an increase in cost for automakers. While GM’s (GM, Fortune 500) cars and trucks meet current efficiency requirements, the Treasury Dept. said its product lineup is more “vulnerable to CAFE standard increases than the portfolios of many of its competitors.”

CNN