It was another busy week in the auto industry. As the economy continues to worsen, the government looks to send more financial aid to auto manufacturers. The government also made news this week by increasing fuel economy standards for upcoming models. Read about this and other top stories below.

• U.S. expected to give more money to automakers
  It looks like the government will be extending more short-term aid to G.M. and Chrysler sometime next week. Of course, there are restrictions tied to the money. The companies will need to meet the terms of the loan agreements in just a few short weeks.
  
  
• Fuel efficiency standards hiked for 2011
  The Obama administration has increased the fuel efficiency standard for cars coming out in the model year 2011. Auto makers will have to increase fuel efficiency by 2 mpg over the current standards. This is the first step of many toward the ultimate benchmark of 35 mpg by the year 2020.
  
  
• Mazda makes commitment to diesels, weight reduction over hybrids
  While seemingly every auto manufacturer is jumping on the hybrid bandwagon, Mazda is forging its own path. Rather than using new “green” technology, Mazda is focusing on using weight reduction and diesel engines to achieve fuel-efficient automobiles. They hope they can have a diesel that’s as efficient as mild hybrids by 2011.
  
  
• All-electric sedan awaits federal aid
  Tesla Motors unveiled the Model S, an all-electric sedan, on Thursday. They hail the car as the beginning of the new generation of fossil-fuel-free cars. However, before they can build the car, they need funding. Tesla Motors is seeking a $450 million loan from the government.
  
  
• Nissan planning luxury hybrid in ’10
  As “green” technology continues to become more popular, Nissan plans to launch a luxury hybrid in the U.S. and Japan next year. The company is looking to catch up with Toyota and others in the competitive hybrid market. This announcement comes at a time when Toyota already has Lexus hybrids and BMW plans to launch their own luxury hybrid soon.
  
  

Which auto-related story caught your eye this week? Share them with us in the replies.