Automakers race to plug in to demand for electric cars

Daimler hopes to get 100 all-electric Smart EDs, which it displayed in Paris, on the roads in Berlin and Paris soon. (Remy de la Mauviniere/AP)

PARIS - As the race to offer the first commercially viable electric car charges up, automakers hoping to cash in on environmental concerns displayed a slew of models at the Paris Motor Show on Friday.

But executives acknowledged that uncertainties linger over the batteries needed to power them: Technology needs to advance to meet cost and weight requirements, and infrastructure to recharge them is lacking.

Some of the models on show are still prototypes - such as Renault SA's Z.E. Concept - while others such as Daimler AG's all-electric Smart ED, have entered the test phase.

Most of them won't be commercially available for several years - and even then automakers say they will struggle to meet demand.

"The investments needed for electric cars are colossal," Renault chief executive Carlos Ghosn said during the auto show, which opened to the public yesterday and runs for two weeks.

Electric vehicles have been around for over a century. Hindering their development was their capacity for energy storage: Batteries lacked the performance and range required for regular use. Since then, the technology has developed, and analysts say recent developments in lithium-ion cell technology - which Daimler, Renault, General Motors Corp. and Chrysler LLC plan to use - are promising.

Demand is being led by environmental concerns and by legislation - new European Union rules are being shaped to limit carbon dioxide emissions.

GM plans to be one of the first to market with the rechargeable Chevrolet Volt, which it says will go on sale in late 2010. GM hasn't decided yet which battery maker to use for the Volt but has already settled on the requirements: a range of 40 miles and three hours to recharge.

"General Motors is betting an awful lot on the Volt, and I think its more than just an image issue, so we are all very interested in that," said Finbarr O'Neill, head of international operations for J.D. Power & Associates.

"But there are multiple answers here. It's not just electric cars. It's bringing down the cost of hybrid, further diesel growth, downsizing gasoline engines, weight reduction, stop-start technology. All of those things are going to be pushed to the limits in order to get lower emissions and greater mileage."

Chrysler last week unveiled three electric-powered models - a sports car, a four-door Jeep, and a minivan - and promised to put one of them on sale in the United States in 2010.

BMW Group is working on an electric Mini, but chief executive Norbert Reithofer said, "There's a lot of hype about the electric cars - the numbers of electric cars available in 2020 will not be above 5 or 10 percent of the total."

Daimler is working with electricity suppliers to build up infrastructure to allow 100 electric-only versions of its Smart micro car to go in service in Berlin and Paris in the next year.

French power provider Electricite de France SA offered a glimpse of the future with its "smart" charging terminal, currently being tested on Toyota Motor Corp.'s Prius cars in Britain. The technology is designed to recognize the car, allowing drivers to be invoiced directly no matter where they charge their vehicles.