The "Volt" engine based on E-Flex was being shown at the North American International Auto Show, two months after GM announced a big shift in strategy to explore new-wave technologies.

With hybrid technology, a battery powers the automobile with electricity at low speeds and then a gasoline engine kicks in. But with E-Flex, GM says the day of the all-electric vehicle is drawing nearer.

Robert Lutz, GM's vice chairman for product development, said the company is so confident in the "Volt" concept that it has already started engineering development on a vehicle while battery makers wrestle with GM's specifications.

"We're making the bet that batteries will be ready when the vehicle is ready," he said.

The electric motors used in the GM system draw energy from lithium-ion batteries that can be recharged from an ordinary wall socket.

They need recharging roughly every 40 miles (64 kilometers), which is slightly less than the range of 60-90 miles achieved by the pathbreaking but short-lived EV1 electric vehicle introduced by GM in the early 1990s. GM stresses that 40 miles is far enough for most urban drivers. And a small, 3-cylinder internal combustion engine will extend the vehicle's range to 640 miles for longer trips.

"We're going to do this fast," said Jon Lauckner, GM vice president for global program management, while adding that it was "too early to be talking about cost."

The system also can run on ethanol or bid-diesel fuel, eliminating the need for petroleum completely, the executive said.

Lauckner said the E-Flex system sets the stage for use of a more diverse range of energy resources, ranging from full-electric vehicles to short-range hybrid cars and even fuel-cells that create electricity from hydrogen.

In September, German luxury carmaker BMW unveiled a version of its top-of-the-range "7" series capable of running on gasoline or hydrogen, which emits only water vapor.

Other carmakers including Toyota, Nissan and GM's Detroit rival Ford are also working on new engines powered by long-lasting lithium-ion batteries.

"The key thing for many people is the ability to accomplish their daily driving task without the IC (internal combustion) engine going on," Lutz said, trumpeting the Volt's green credentials.

He said GM was attracted by advances in lithium-ion batteries, which are now used to power cellphones, tools and laptop computers. "We need fewer but larger cells," Lutz said. "That's the part that's got to be handled. "But the reason we're confident is the huge progress that's been made in the last 10 years," he said. "We don't think it's insurmountable."

GM announced last week that it had approved contracts for experimental battery packs with two different teams, capable of building lithium-ion cells for the Saturn Vue "plug-in" hybrid announced in November.

One contract went to a team comprising two US companies. The second team includes Paris-based firm Saft, which makes a range of lithium-ion batteries for consumer electronics.

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