Briefs: Automotive News & More(4)

Ford and GM Extend Incentives Both General Motors and Ford have announced
that they have extended their July sales-incentive programs, which offer zero-percent
financing and other discounts. This move is apparently in response to continued slow sales
of the affected models. GM Selling Allison Transmission General Motors
recently announced that it will sell Allison Transmission to the Carlyle Group and Onex
Corp. GM will keep one factory that makes transmissions used in GM light trucks. Currently,
Allison transmissions are available in the Chevrolet Silverado 2500 HD and GMC Sierra 2500
HD with the Duramax Diesel engine. Senate Passes New Fuel Economy Rules
The U.S. Senate recently passed an energy bill that includes higher automobile fuel economy
standards, laws against energy price gouging and a requirement for a boost in ethanol
production. Agreement was reached to raise the average fuel economy by 40 percent to 35
miles per gallon for cars, SUVs and pickup trucks by 2020. Long-Term Gas Prices
Expected to Rise The International Energy Agency’s Medium-Term Oil Market Report
predicts that global demand for oil will rise by an average 2.2% year-on-year and that
decreasing output will result in increasing prices beyond 2010. The IEA also predicts that
the use of biofuels will increase rapidly during the forecast period, but it will still be
marginal through 2012.