By John Crawley
WASHINGTON (Reuters) - Senate lawmakers on Tuesday proposed doubling the number of plug-in electric hybrids eligible for consumer tax credits as a way to stimulate sales when the vehicles hit showrooms late next year.
The proposal to make up to 500,000 vehicles eligible for a credit -- mainly ranging from $2,500 to $7,500 -- was included in economic stimulus legislation considered by the Senate Finance Committee.
The proposal was introduced one day after U.S. President Barack Obama set in motion a process that could force automakers to improve fuel efficiency in coming years by sharply reducing tailpipe emissions.
Although U.S. and other major manufacturers have long fought such a mandate, they have accelerated efforts to produce more gasoline-electric hybrids and develop a blueprint for introducing an even more environmentally friendly electric-drive vehicles.
"There's a race to be the first to market and we hope to win it," said Greg Martin, a spokesman for General Motors Corp, which has based a large part of its future on the plug-in Volt.
The Volt is due out next year and is designed to run 40 miles on a single charge.
Ford Motor Co and Chrysler LLC are planning electric vehicles as well.
The credit, which would expire at the end of 2011, is designed to cover the first wave of plug-in vehicles.
GM has not announced an initial production run or a retail price for the Volt, but costs to consumers of first-generation plug-in sedans and sports cars now offered by start-up companies can reach $100,000.
Lobbyists for big automakers believe stimulus legislation can help the industry shake its severe sales slump, which prompted a $17 billion government bailout of GM and Chrysler in December.
Consumer tax credits were instrumental in boosting early hybrid sales, especially for the Prius from Japan's Toyota Motor Corp.
Stung by record high fuel prices last summer, consumers have demanded automakers produce more fuel-efficient vehicles.
Congress has already made available $25 billion in loans to help U.S. automakers retool their operations to make more hybrids, plug-ins and cars that run on other alternative fuels.
Senate lawmakers want the Obama administration to double the loan program.
(Editing by Jeffrey Benkoe)
