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Senate approves tax break for auto loan interest

The U.S. Senate voted on Monday to make loan interest and sales taxes on vehicle purchases deductible from federal income taxes. The proposal, championed by the National Automobile Dealers Association, was added to an economic stimulus bill under debate in the Senate.

Volkswagen Golf GTE Plug-in Hybrid UK debut

The VW Golf GTE (pictured) gets its UK debut at the NEX next week The Volkswagen Golf GTE – which VW see as a plug-in hybrid Golf GTI – was revealed in February ahead of its debut at the Geneva Motor Show last month and is now heading for the Gadget Show Live at the NEC next week for its UK debut. With a 1.4 litre TSI petrol turbo producing 148bhp and a 101 bhp electric motor, the Golf GTE promises decent performance – 0-62mph in 7.6 seconds – daft official economy figures of 188 mpg and the ability to run on electric power only for up to 31 miles. It’s an appealing combination for a Golf that can offer city running benefits with a turn of decent performance when the mood takes, although at a price likely to be north of £30k it’s not exactly a budget buy.

Chinese bank may join Saab rescue deal

Saab's owner, Swedish Automobile, said on Monday it is discussions with a bank in China and Chinese automaker Zhejiang Youngman Lotus Automobile over a rescue deal for Saab. Reports had said on Sunday that the Bank of China would replace China's Pang Da as an investor in Saab, which is under bankruptcy protection. Swedish Automobile confirmed Monday that it is talking with Youngman and a bank in China about an equity interest, but did not name the bank.