So what's happening?

Words By Jim Holder

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The truth is, the car industry is in transition.

With legislation on both sides of the Atlantic setting punishing emissions targets, manufacturers have no choice but to invest in green technology.

At the same time, lean, green, small cars aren't what fire pulses, or necessarily what consumers really want, and that presents car makers with a fine line to tread.

Bob Lutz, vice-president of General Motors, is candid about the situation - he says there's plenty more uncertainty to come.

'We're trying to cover every base at the moment,' he says. 'We're investing in every green technology, while building cars that we think will sell.

'My fear is that if combined government legislation keeps pushing for vehicles that do 35mpg we'll end up producing a range of vehicles that people don't want.'