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Japanese automaker Mazda will raise $1 billion (96 billion yen) through the sale of new shares and treasury stock and pump money into the development of hybrid cars and other environmentally friendly vehicles, according to a Financial Times report Monday.

The car company will issue 363 million new shares, roughly a quarter of their current outstanding stock, and sell 96.8 million shares acquired last year from Ford. Ford sold off most of its 33 percent stake in Mazda last year as the global economy worsened.

Around two-thirds of the funds would go toward developing safer, more fuel-efficient cars, the company said as it tries to close the gap with Toyota and Honda. Mazda currently offers just one hybrid car – the Tribute – which uses technology developed by Ford.

The rest of the money would go toward general capital investment.

Mazda also reported a quicker-than-expected rebound in their second quarter, which saw a return to profitability at the operating level.

The car company is also trimming its projected losses for the fiscal year and raised its sales forecast, according to the Financial Times.

Following a pattern of economic improvement in recent weeks, General Motors was surprised to find that its dealers want up to four times more cars than the company had predicted it would build in October, reports the Detroit News.

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By Cait Murphy of CBS MoneyWatch.com.

On the sidewalks of the far west side of Manhattan, two well-dressed car salesmen are taking a break. Have they noticed a difference in their business since the government's "cash for clunkers" program began in July? "Oh, yes," says one, waving his cigarette. "Totally," echoes his colleague, between drags. "There was nothing going on before, and now we're being run off our feet."

Their bosses, who do not allow sales people to speak to reporters, would doubtless agree. Both Ford and GM gave the Car Allowance Rebate System (CARS), which gives vouchers worth up to $4,500 to consumers who trade in gas-guzzling cars for more fuel-efficient models, credit for a nice little boost. And certainly it's been great for the guys on the front lines. "We needed a shot in the arm and this is it," says Cody Lusk, president of the American International Automobile Dealers Association. "The problem was everyone had been sitting in the sidelines. It was like a flower wilting; cash for clunkers was like sprinkling a little water and the flower begins to revive."

Video >> Can Car Makers Survive Without Cash for Clunkers?

Certainly the program, which ends today, was popular. The first $1 billion, which was supposed to last for months, was accounted for in less than a week. Congress, with a little grumbling from those worried about the cost, quickly poured in another $2 billion on Aug. 6. At a fundamental level, though, what did the cash for clunkers program really achieve?

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The government's "Cash for Clunkers" rebate program to spur sales of more fuel-efficient cars has worked extremely well, with auto sales up. Some dealers, however, are complaining that they don't have the inventory to meet demand.

Now Chrysler is dropping its offer to increase the rebate offered by the government's Car Allowance Rebate System (CARS) program, which can be as high as $4,500 depending upon the car model purchased.

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More than 10 percent of the money allocated to the government's "Cash for Clunkers" program has already been doled out, according to the Detroit News.

As of Wednesday, $96 million in vouchers had been submitted for reimbursement, the National Highway Traffic Safety Administration said.

U.S. Rep. Candice Miller said that the program's coffers could run dry in "a matter of weeks."

The program is accelerating despite criticism that many drivers with fuel-inefficient cars don't qualify under the strict guidelines.

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Russian President Dmitry Medvedev on Wednesday compared Russia's economic woes to those of the United States – albeit on a smaller scale – and while (presumably) trying to avoid lecturing U.S. policymakers, Medvedev did offer some stark contrasts to the way the U.S. has handled the current economic crisis.

Medvedev appeared on CNBC's "Closing Bell With Maria Bartiromo."

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President Obama announced today that his Auto Task Force helped General Motors produce a plan for the company to "move toward profitability" and "start building a larger share of its cars here at home, including fuel-efficient cars."

To many observing the government's control over the auto maker, however, those goals do not necessarily align.

"GM wants to make money, but making green vehicles is a totally different object," said Dan Ikenson, associate director of the Center for Trade Policy Studies at the Cato Institute, a free market think tank. "The government has to decide -- do we want it to be a profit maximizing business, or a tool of policy?"

President Obama has made the promotion of a "green" economy one of his top policy priorities, and Congress is facilitating his agenda with a plan to put a price on carbon. The government’s majority share in GM presents an opportunity, some say, for the administration to help an ailing industry while pushing green initiatives. For others, however, the government's obligation to see major car manufacturers through this economic storm means taking a more measured approach to "greening" the auto industry.

"There's two elements to rescuing the American auto industry," said Daniel J. Weiss, director of climate strategy at the liberal Center for American Progress. "There's the short term effort to keep them from drowning, then there's the long term effort of building a boat to get them to where they want to go."

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This story was written by Prerana Swami and Anna Aulova.

Although GM announced less than 24 hours ago that it would file for bankruptcy, the debate over governmental involvement in one of America's largest auto companies has long been raging online.

As far back as November 2008, NYU Law Professor Michael E. Levine was calling for bankruptcy for the company in the Wall Street Journal, stating that it was the best option for the auto giant.

"GM as it is cannot survive without long-term government life support. If it gets that support, it can't change enough and won't change fast enough," Levine wrote."It's the only option that merits public support and actually has a chance at succeeding.”

After the announcement Monday, many took to the blogs to express their views and their hopes for the auto giant.

In an editorial for the Huffington Post, the Michigan-born filmmaker Michael Moore bid a farewell to GM 20 years after his documentary "Roger And Me," which detailed Moore's efforts to confront then-GM CEO Roger Smith about the closure of a plant in Flint, Michigan, was released.

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With the news of General Motors' historic bankruptcy this morning, we asked CBS Evening News business producer Guy Campanile to provide some perspective by answering the following five key questions about the storied automaker, the whole car industry and the greater economy:

1) How will GM survive all this negative publicity in terms of getting future customers to buy their cars?

GM's ability to win back consumers scared off by bankruptcy depends on the speed of the bankruptcy case. The Obama Administration would like to see a debt-free and smaller GM spin out of the courts by September.

The trick in the car business is to get rational people to spend money for an irrational thing. Remember -- all a car or truck really does is provide transportation. The auto industry makes money by convincing consumers that they require leather interiors, sunroofs, sculpted lines and a killer sound system to feel good about making those trips.

People are unwilling to lay out the $25,000 required to buy such amenities if they are dubious about the sustainability of a car company. People typically own cars for 5 years or more. That's a commitment that must be supported by confidence in the brand. GM will have no chance at convincing people to buy its brand unless it quickly gets back to the business of building profitable cars and trucks in North America.

2) What does this bankruptcy mean for the rest of the auto industry?

The American auto industry as we knew essentially ended today. The auto making behemoth that was General Motors is dead. It is now a government-owned ward of the bankruptcy courts. Chrysler is part of an international car company (FIAT).

Only Ford remains as a fully independent American automaker. How Ford takes advantage of its strong position is unclear. They could play-up the fact that they are the last survivor on the island. But they could risk alienating many consumers. Of course, the economy could get worse and Ford may find itself in the same boat as its Detroit cousins.

Ultimately we are looking at an industry that is not American, Japanese, Korean or German. The new reality is that cars are made in bits and pieces all around the world by companies that are capitalized by investors all around the world. The modern auto industry is now truly a global affair with a far more nebulous national character.

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As part of General Motors' bankruptcy filing, the automaker will be closing 9 new plants and idling three. The company will also close three service and parts centers.

Below is a list provided by GM, along with the effective dates (which may come earlier, as the market demands):

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