GENERAL Motors has reached a preliminary agreement with United States regulators to certify the Chevrolet Volt, an electric vehicle that can be recharged at home or via a 1.4-liter gasoline engine, as the first 100 mile-per-gallon car, the company said.
The country's biggest auto maker, whose sales of pickup trucks and sport utility vehicles collapsed this year as gasoline topped US$4 a gallon, is cutting the mileage deal while urging Congress to approve US$25 billion in government loans to help the industry meet new federal fuel-economy standards.
Earning a 100mpg certification would give Detroit-based GM the holy grail auto companies began seeking following the oil shocks of the 1970s.
The Environmental Protection Agency agreed to a testing method that will produce a rating at least that high, said Tony Posawatz, 48, vehicle-line director for the Volt in Warren, Michigan.
The four-passenger car, which goes on sale in November 2010, will be able to travel 40 miles (64 kilometers) before the engine needs to recharge the battery.
While the Volt is classified as an electric car, GM will still be able to claim it's the most fuel-efficient vehicle on the road because the gasoline-powered generator will start after the sedan exceeds the battery's 40-mile range.
The government and industry-backed Partnership for a New Generation of Vehicles tried to create an 80mpg vehicle in the 1990s. The group disbanded in 2001 after failing to develop one. The Progressive Automotive X Prize is offering US$10 million to the first team to produce a 100mpg vehicle that passes its tests and can be commercially produced.
As with all auto makers selling in the US, GM must increase the average mileage of its fleet as much as 40 percent to 35mpg by 2020 to comply with new federal standards. US auto companies estimate they'll need US$80 billion to US$100 billion to meet the new fuel-economy mandate.
The Volt may sell for more than US$30,000, according to GM Vice Chairman Robert Lutz. The sedan is the centerpiece of a drive by Chief Executive Officer Rick Wagoner to narrow the technology gap with competitors.
GM lost US$18.7 billion in the first half as vehicle sales dropped by16 percent.