France launches 'battle of the electric car'

France launched the "battle of the electric car" Thursday as it unveiled plans to invest 1.5 billion euros (U$2.1 billion) on infrastructure for the two million electric and hybrid cars it wants on the road by 2020.

"No player can take the risk alone, but if all the actors take it at the same time, that works," said Ecology Minister Jean-Louis Borloo. The aim is to "make the French energy and car industry a world leader," Borloo told reporters as he presented his government's strategy on helping reduce C02 emissions via eco-friendly cars. The project covers everything from industrial research, making batteries, producing clean cars and building a nation-wide network of battery-charging stations.

Of the total 1.5 billion euros (2.1 billion dollars) earmarked, 900 million euros could come from a state loan due to be launched next year, said Borloo. The money will be used mostly to build infrastructure but also to buy cars and on subsidies for both makers and buyers of clean vehicles.

Under the plan, a million battery-charging points will be built by 2015, 90% of them in private homes but also in car parks and at roadside sites. From 2012 all new apartment blocks with parking lots will have to include charging stations, and the network will grow to a total of four million points by 2020, the equivalent of two per vehicle.

One hundred million euros will also be made available for other electric carmakers such as Peugeot or Daimler's Smart division, officials said. Joint purchases by state authorities and major private companies will see orders for 100,000 electric vehicles by 2015, according to the plan. By 2030 the emissions-free vehicle sector in France is projected to be worth some 15 billion euros (21.8 billion dollars), representing 27% of the total market, according to the ecology ministry.

The two French automakers Renault and Peugeot-Citroen presented their solutions for tomorrow's cars - electric or hybrid - at the Frankfurt Motor Show earlier this month. Renault introduced four electric prototypes in Frankfurt that cover the range from small urban to commercial vehicles. Renault, which includes Nissan Motors, chief Carlos Ghosn says he has made Zero Emissions the group's top strategy in the ongoing battle against CO2 emissions. The firm believes that by 2020 electric cars will make up more than 10% of the market and hopes to present its electric cars by 2011 and have them ready for the market the following year.

Rival PSA Peugeot Citroen equally aims to impress the general public with its environment-friendly cars after new company head Varin, who took over in June, made them one of his priorities.

Electric vehicles were the star of the Frankfurt auto show but experts predict that cars will roll on a variety of power sources for quite a while.

Source : Agence France Presse (AFP), October 2nd, 2009