Green Options

China has announced plans to take on the US head-to-head in the race to develop low emission vehicles, with a massive $2.2 billion investment in electric cars over the next three years.

The news comes hot on the heels of President Obama’s announcement of a whopping $2.4 billion investment in electric vehicles in the United States.

The Chinese government hopes that the investment will help the country to make 500,000 all-electric and hybrid vehicles a year by 2011 - and encourage organizations like city governments and airport taxi firms to enjoy subsidies of more than $70,000 on fleets of new vehicles.

GM will get its $4 billion loan payment from the government today but the company is nowhere near being off the hook.

Ford Motor Company has unveiled radical new plans to start producing electric vehicles from 2010 onwards. The company will deliver an all-electric van for commercial fleet use in 2010, an all-electric sedan in 2011 and a ‘family’ of hybrids, plug-in hybrids and EVs by 2012.

Ford also said in a submission to Congress that full details of its ‘accelerated vehicle electrification plan’ will be announced at next month’s North American International Auto Show in Detroit.