General Motors is seeking to steal a march on rival Ford with a renewed commitment to environmentally friendly energy.

The new direction for the company became the main focus of the Detroit motor show – and came as a surprise to industry observers as GM ceased work on an electric vehicle only three years previously on the grounds there was insufficient demand for it.

GM has said it is to invest £52m in green technology as the company believes all cars will inevitably run on hydrogen, bio-fuels or batteries as oil supplies dwindle and the price correspondingly rises.

The first car to embody the new GM credentials is the Chevrolet Volt, which the company claims is the first mass market prototype car designed to run on an electric motor.

The green message, however, was undermined at the motor show by the presence of the Hummer stand, also owned by GM, immediately opposite.

Industry analysts believe the giant American car manufacturers must urgently adapt to survive. Ford has lost domestic market share for 11 years in a row and both Ford and GM have shed 65,000 jobs between them and closed 28 factories in recent years.

During 2007 Toyota is set to overtake GM to become the world’s largest car manufacturer.