Time's up for petrol cars, says GM chief

The Chevrolet Volt concept electric car is presented at the GM Style event,
kicking off the North American International Auto Show in Detroit. Photo: AFP

One of the world's biggest car maker, General Motors, believes global oil supply has peaked
and a switch to electric cars is inevitable.

In a stunning announcement at the opening of the Detroit motor show, Rick Wagoner,
GM's chairman and chief executive, also said ethanol was an "important interim solution"
to the world's demand for oil, until battery technology improved to give electric cars the same
driving range as petrol-powered cars.

GM is working on an electric car, called the Volt, which is due in showrooms in 2010,
but delays in suitable battery technology have slowed the project.

Mr Wagoner cited US Department of Energy figures which show the world is consuming
roughly 1000 barrels of oil every second of the day, and yet demand for oil is likely to increase
by 70 per cent over the next 20 years. Some experts believe the supply of oil peaked in 2006.

The remaining oil reserves are deeper below the Earth's surface and therefore more costly
to mine and refine.

"There is no doubt demand for oil is outpacing supply at a rapid pace, and has been for
some time now," Mr Wagoner said. "As a business necessity and an obligation to society
we need to develop alternative sources of propulsion."

He added: "So, are electrically driven vehicles the answer for the mid- and long-term?
Yes, for sure. But … we need something else to significantly reduce our reliance on petroleum
in the interim."

GM is so convinced about ethanol it has signed an agreement with a supplier that claims
to have come up with a way of producing ethanol that is cheaper and more efficient than
refining oil. The supplier claims it can produce ethanol from "almost any material" such as
farm waste, municipal waste, discarded plastics - even old tyres.

The car industry has had a love-hate relationship with ethanol, which is most commonly derived
from crops such as corn, wheat and sugar cane. At first, car makers criticised ethanol-blended
fuel because most vehicles weren't compatible with it. Then car makers changed their tune and
embraced ethanol-blended fuel after retuning engines to suit the new mix.