The chairman of General Motors has offered his two cents on the future of petrol car. In his opinion, announced at the opening of the Detroit motor show, Rick Wagoner said he believes global oil supply has peaked and that ethanol was the likely short-term solution until electric cars are designed to keep pace with the driving range of petrol vehicles.

"There is no doubt demand for oil is outpacing supply at a rapid pace, and has been for some time now," Wagoner said. "As a business necessity and an obligation to society we need to develop alternative sources of propulsion. So, are electrically driven vehicles the answer for the mid- and long-term? Yes, for sure. But … we need something else to significantly reduce our reliance on petroleum in the interim."

GM has an electric car - the Volt - in the works, but problems in the development of battery technology mean the car, due in 2010, will likely be delayed. In the meantime, GM has entered an agreement with an ethanol supplier that is claiming it can produce ethanol out of farm and municipal waste, old tires and plastic waste.

» Sydney Morning Herald