He also said GM would start offering versions of its Hummer models that could run on biofuel within three years. The Hummers have become a lightning rod for critics of vehicle fuel efficiency.
"By developing alternative sources of energy and propulsion, we have the chance to mitigate many of the issues surrounding energy availability," he said in a speech at the auto show.
Hybrid vehicles have both electric and gasoline power systems. They save on gas consumption by shutting off the engine while idling, giving the vehicle a boost of electric power during acceleration, and capturing electrical energy when the vehicle is braking.
GM already produces a hybrid Saturn vehicle - the Vue Green Line SUV - which the automaker says gets 27 miles per gallon in the city and 32 m.p.g. on the highway. The comparable traditional-engine Vue is rated at 22 m.p.g. in the city and 27 m.p.g. on the highway.
With a plug-in hybrid power system, batteries can also be recharged by plugging them into an electrical outlet.
GM has been promoting the Vue Green Line as a less expensive alternative to hybrids already on the market from Toyota and Ford Motor Co. The Green Line's hybrid system adds about $2,000 to the cost of a Saturn Vue, compared with a premium of $3,500 or more for other hybrids.
Meanwhile in Washington yesterday, Toyota North American president Jim Press urged Congress to extend federal tax credits for hybrid vehicles and accelerate the government's purchase of hybrids and alternative fleet vehicles to help address energy concerns.
A 2005 federal energy bill provided up to $3,600 in tax credits to U.S. consumers who buy hybrids, but Toyota Motor Corp. hit the legal production limit this summer of 60,000 vehicles that are eligible for the full tax credit.
Toyota officials said the automaker's U.S. hybrid sales dropped in October to their lowest levels since March, attributing the decline in demand in part to the reduced tax credits.
GM's start of production of the plug-in hybrid version of the Saturn Vue will depend on progress in battery technology, Wagoner said. He said the automaker was working with several battery companies on the project.
