GM: All over for oil

The chief executive of the world's largest motor company believes the world's oil supplies have peaked, and as a result the eventual switch to electric power is virtually inevitable.

Addressing the press at the Northern American International Motor Show in Detroit, Rick Wagoner explained he thought the change would occur over the coming decades.

"There is no doubt demand for oil is outpacing supply at a rapid pace, and has been for some time now," Mr Wagoner said.

"As a business necessity and an obligation to society we need to develop alternative sources of propulsion."

At present GM is developing an electrically powered car - the Volt - but a sufficiently powerful battery has thus far proved to be a stumbling block.

"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," Mr Wagoner added.

In the interim Mr Wagoner believes car manufactures could turn to ethanol - which is expected to form an "important interim solution" - as long term replacements for oil are prepared.