GM seeks $2.6b loan for hybrids

General Motors Corp has asked for $2.6 billion of low interest government loans to support the development of three new hybrid vehicles, according to a business plan update released on Wednesday.

GM's loan request, which would help develop two spinoffs from its all-electric Chevrolet Volt, raises to $10.3 billion the aid it is seeking under a US Energy Department program designed to support development of fuel-efficient vehicles.

The request for low-interest taxpayer backed loans was made on Monday to the US Treasury Department, GM said. It was the automaker's third request for loans under the program.