31 August 2001: A new hybrid engine developed by the tyre giant Continental AG is to be used in two GM pickups from 2004, according to an agreement announced by the two companies yesterday.

The engine - a component of which is pictured above on a test-bed - will be an option available to buyers of the Chevrolet Silverado and MC Sierra models. It is the first car-based application for the unit.

A million hybrid vehicles were sold in the US last year, most of them built by Toyota and Honda. The new Conti engine would offer a 10 per cent fuel efficiency improvement and vastly reduced emissions.