AUTOS : GM Group Forms Unit to Make, Sell Parts for Electric Vehicles

General Motors Corp.’s components group formed a new business unit Wednesday that will develop and sell parts and propulsion systems for electric and hybrid vehicles to car, truck and bus makers worldwide.

The initiative, the first by a major auto maker, comes as GM and other car makers are fighting regulatory efforts in California and the Northeast to require the sale of electric vehicles in a few years.

The company is forming Delco Propulsion Systems to coordinate the efforts of three units heavily involved in electric vehicle research and development: AC Delco Systems, Allison Transmission and Delco Electronics.

“This is an effort to meet real market demand for electric and hybrid vehicles on a global basis,” said Ned McClurg, vice president for AC Delco.

The new unit of GM’s Automotive Components Group hopes to sell batteries, motors, controllers, chargers and other components as complete systems to vehicle manufacturers as well as companies that convert conventional cars to electric power.

McClurg said he saw no conflict between this effort by GM’s parts operations to develop an electric vehicle market and the company’s efforts to resist California’s mandate that 2% of vehicles offered for sale in 1998 be zero emission. Only electric vehicles can now meet the zero-emission standard.

“We truly believe there will be a market for electric vehicles,” he said. “That’s a different issue than whether a mandate is the way to go.”

J. Byron McCormick, managing director of Delco Propulsion, said that GM sees great potential for electric vehicles not only in California, but particularly in Europe where environmental consciousness is high and some cities are seeking ways to reduce severe air pollution.

“This strategically positions ourselves for the European market,” he said.

GM has been considered the technological leader in electric vehicles since the 1990 introduction of its two-seat Impact vehicle. The company said it would mass product the car by 1995, but backed off when financial problems forced it to withdraw backing for the project.

Company officials said that many of the technologies developed for the Impact, which is still undergoing field tests, now will be offered to other manufacturers in the United States, Europe and Asia.