GM to make hybrid vehicles

Mumbai: General Motors Corporation (GM), the world's biggest automaker, has committed itself to make a rechargeable hybrid vehicle, in a bid to allay environmental activists' fears about the harmful effects of gas-guzzling vehicles.

Speaking at the opening of the Los Angeles Auto Show, GM chief executive Rick Wagoner said development of the plug-in hybrid technology is "top priority" for his company. "The technological hurdles are real, but we believe they are also surmountable," he said.

In fact, Wagoner said, GM had begun work on a plug-in hybrid version of the Saturn Vue sports utility vehicle.

Hybrid vehicles using both electricity and gas have the potential to sharply increase fuel efficiency as they use advanced batteries to power them over short distances. GM said its plug-in vehicle could provide double the fuel-efficiency of any SUV now on the road.

Starting 2008, GM said, it would begin selling a version of the Vue hybrid using a "two-mode" electric power system jointly developed with DaimlerChrysler AG and BMW
AG.

Wagoner said GM would have further electric vehicle announcements at the Detroit Auto Show in early January.

Hybrid vehicles, like Toyota Motor's Prius, are powered by both electric motors and gas engines. Almost a third of the Prius hybrids sold by Toyota have been sold in California, according to published trade data.