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GM Hopes to Hatch New Hybrids

Diesels Taking the Lead in Europe

October 30, 2006

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General Motors Corp. plans to invest a portion of the $9 billion in savings from cost cuts this year to make vehicles that challenge the Toyota Motor Corp. in technology and fuel efficiency, according to published reports in Detroit.

GM's plans include a hybrid-electric vehicle with a battery that recharges at any outlet, more efficient gasoline engines, hybrid versions of the Silverado pickup and hydrogen-powered fuel cell models that emit only water vapor.

An announcement from GM detailing the company's hybrid plans is expected before the end of the year.

GM reported a third-quarter loss of $115 million and said it was spending more cash on its automobile business than it was generating through vehicle sales. GM lost $1.66 billion in the year-earlier quarter.

GM has assigned a team of engineers to develop plug-in hybrids. Known in Detroit as the I-car or Icon car, the project is to be designed as the centerpiece of a new GM strategy for plug-in hybrids.

Plug-in hybrids recharge when the vehicle isn't in use and switch to the gasoline engine when the batteries are drained.

Toyota sold 235,000 hybrids worldwide last year. GM's first true hybrid, the Saturn Vue Green Line, went on sale this month.

Western Europe Diesel Sales

Diesel-powered new cars are outselling gasoline models for the first time in western Europe. In the first seven months of 2006 diesels accounted for 50.6 percent of western Europe's total new-car volume.

Automakers sold 9.9 million cars in western Europe through the first eight months. Analysts forecast that diesel will finish the year with an even bigger share of the market.

Diesel's share of the western European new-car market was 13.8 percent in 1990 and has increased ever year since except 1995 and 1997 when the numbers remained virtually unchanged.

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