Report: GM asks for auto development loan

DETROIT, April 3 (UPI) -- Struggling General Motors Corp. is asking the government for a $2.6 billion loan to develop three new alternative vehicles, sources told the Detroit Free Press.

Two of the new vehicles would be spinoffs of the electric-powered Volt, and a third would be a separate vehicle, the Free Press reported Friday.

The loan application was submitted to the U.S. Department of Energy and is not connected to the $13.4 billion emergency loan that is helping GM stay in business.

GM has plans to get the Chevrolet Volt to dealer showrooms in 2010 and to increase its gas and electric hybrid and all-electric offerings to 26 by 2014.

The automaker now has six gas and electric hybrids on the market, the newspaper said.