"Besides presenting financial viability plans, the Big Three can pay no dividends or 'excessive' executive compensation and must commit to making fuel-efficient cars. The viability plans must take into account pension obligations.

The loans would be callable if any of the benchmarks aren't met.

Increased fuel efficiency is expected to be a key part of the deal. The Big Three have signaled they will accept higher standards.

'All of the market research suggests that consumers do not want to be exposed to the type of (gas) price volatility in the future' that they saw over the summer, said an industry source. 'So all of the new product plans are built around new fuel-efficient cars and trucks.'

But another industry source said automakers might balk at a rise from the efficiency mandates set in 2007 energy legislation."

Meanwhile, the other auto industry churns out vehicles that people want to buy and regularly works to improve efficiencies:

"The root of this other industry's success is no secret. In fact, Detroit has already adopted some of its efficiency and employment strategies, though not yet enough. To put it concisely, the transplants operate under conditions imposed by the free market. Detroit lives on Fantasy Island."