CLINTON’S INDUSTRIAL POLICY : Detroit Likes ‘Clean Car’ Research Subsidy Plan : Automobiles: Officials say a government-industry partnership should speed efforts to make low-emission vehicles.

President Clinton’s proposal as part of his technology initiative to fund “clean car” research should enhance the Big Three’s uphill efforts to produce viable low-emission vehicles by 1998, industry officials said Tuesday.

“By government coming to the table, it further increases the possibility that it can be done,” said Don Walkowicz, executive director of the U.S. Council for Automotive Research. USCAR oversees cooperative research by General Motors, Ford and Chrysler.

The auto makers are under a government mandate to develop low-emission or electric-powered cars. But they complain of the huge costs and strict deadlines set by California, where 2% of new car sales must consist of zero-emission vehicles by 1998.

In unveiling a broad outline of his industrial policy on Monday, Clinton said he favored government-industry partnerships to develop control systems for hybrid vehicles, advanced batteries for electric cars and alternative fuels, including methanol and hydrogen.

It was unclear how much funding the government would provide for the various projects.

Harold A. Poling, Ford chairman and chief executive, said in a speech Tuesday to the National Press Club in Washington that he was “intrigued” by Clinton’s proposal. “We will look forward to further talks on the subject with the hope that this approach can be beneficial for both our customers and our country,” he said.

The Clinton Administration initiative comes as the auto makers have been clamoring for government aid in developing and producing low-emission vehicles.

According to Bill Sessa, spokesman for the California Air Resources Board, GM President and Chief Executive John F. Smith asked California officials last month for a subsidy of up to $500 million for GM’s electric car work. The request was dismissed.

GM denied that it asked California for a subsidy for its R&D; work. But spokeswoman Jean Crocker acknowledged that there were discussions late last month with public and private officials in California about the high cost of electric-car production. That led to suggestions that California, the federal government and possibly others provide GM the “hundreds of millions” of dollars needed to bring the product to market, she said.

“It is fair to say there are people in California looking at providing that level of assistance,” Crocker added.

The high costs and short timetable for development of zero-emissions cars have prompted U.S. auto makers to form consortia to conduct joint research on battery technology, advanced plastic materials, alternative fuels and other topics. The battery research project--considered key for electric-car development--already is 50% funded by the federal government.

The Big Three also are now negotiating the ground rules for a consortium that would share critical electric vehicle technology. And they are weighing joint production of electric vehicle parts.

“Cooperative research is necessary for everyone to share the cost and to get it done in time,” Sessa said.

GM’s decision in December to curtail its Impact electric car program gave added impetus to the collaborations. The No. 1 car maker, which has been suffering huge losses, had hoped to bring the electric-powered Impact to market before its competitors. But high development costs led GM to scale the project back.