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GM's Lutz Says Alternative Autos May Be Third of Sales by 2015

By John Hughes

March 18 (Bloomberg) -- General Motors Corp. may get as many as one-third of its U.S. auto sales by about 2015 from vehicles such as hybrids that use technology different than current internal-combustion engines, Vice Chairman Bob Lutz said.

``Around 2015 we're going to have to sell a ton of hybrids whether people want them or not,'' because of new U.S. fuel- economy standards, Lutz told reporters today in Washington. ``It's basically going to result in the quasi-disappearance of V-8 engines.''

A U.S. law enacted in December requires vehicles to meet a national average of 35 miles per gallon by 2020, rising from the current 27.5 mpg for cars and 22.5 mpg for pickup trucks, sport- utility vehicles and vans. The new law is an effort to cut oil consumption and curb global warming.

GM, the world's largest automaker, sold 3.82 million cars and light trucks in the U.S. last year, including about 8,400 gasoline-electric hybrids. The Detroit-based company is pursuing fuel-efficient technologies such as hydrogen fuel-cell autos and the so-called plug-in hybrid Volt, a sedan slated to go on sale by 2010 that would recharge at household electrical outlets.

Lutz said he expects GM to sell about 100,000 Volts by 2012. He repeated that the company's cost to meet the U.S. law's 35-mpg average will be $6,000 to $7,000 per vehicle.

To contact the reporter on this story: John Hughes in Washington at jhughes5@bloomberg.net

Last Updated: March 18, 2008 13:10 EDT

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