General Motors Corp., hoping one day to sell parts to the makers of electric and hybrid vehicles worldwide, announced Wednesday the formation of a new business unit, Delco Propulsion Systems.
The unit, to be based in Indianapolis, will be a joint effort of three GM partsmaking organizations: AC Delco Systems, Allison Transmission and Delco Electronics Corp.
While GM executives have argued that battery technology hasn’t progressed to a stage where electric vehicles can be viable in the consumer market, the automaker is hedging its bet by readying itself to take advantage of the electric-vehicle market if it blossoms.
California has passed a law requiring that 2 percent of the vehicles offered for sale in that state in the 1998 model year be electric, with the proportion rising in subsequent years; several other states have adopted similar requirements.
