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GM Electrifies Industry With Chevy Volt

While the batteries needed to power it may be years away from widespread use in cars, General Motors unveiled the Chevrolet Volt, designed to run primarily on electricity and--with a 40-mile range before recharge--getting most commuters to and from work without using a drop of gasoline.

General Motors Chairman G. Richard Wagoner Jr. vowed to give the technology high priority in a sign that automakers are taking on global warming and America's dependence on foreign oil.

In 1990, GM introduced an all-electric car and may have had the market to itself had it not balked at spending $300 million on development. GM put its electric-car plans back on track after being stung by the rising gas prices after Hurricane Katrina in 2005. Higher gas prices ended the boom in sales of large SUVs, which have supported the Detroit automakers. They've also watched from the sidelines as the Prius gas-electric hybrid has brought a windfall of positive attention for the Toyota brand.

"The domestic industry spends hundreds of millions to cultivate image," said Harley Shaiken, an economics professor at the University of California at Berkeley. "What they've been slow to realize is that fuel efficiency is increasingly sexy to many Americans. Even if you don't buy a Prius, you have the sense that Toyota is with the program."

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