Sustainable Automotive Industry Cited as Goal

General Motors and partner Shanghai Automotive have agreed to work on developing and commercializing fuel-cell vehicles, citing the need to improve energy security and reduce pollution as China moves into the auto age.

The agreement, signed Saturday at the headquarters of Shanghai Automotive Industry Corp., expands on a plan announced earlier this month by GM to cooperate with state-run SAIC in building a hybrid bus to test run in Shanghai.

The recent surge in oil prices has driven home the need to develop vehicles that run on alternatives to traditional gasoline and diesel, and Shanghai's leaders have pledged support for research and development of such vehicles, GM Chairman Rick Wagoner said.

"This is in support of the long-term strategic plan of the Chinese government to promote a sustainable automotive industry," said Wagoner. "It's a big enough problem that it requires support from the government."

Booming demand has turned China into the world's fastest-growing auto market, but the explosion in auto use has added to energy shortages and worsened already severe air pollution in many cities, including Shanghai.

The city recently hosted Challenge Bibendum, an exhibition on energy-efficient, environmentally friendly cars that highlighted its interest in developing such new technologies.

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