"Right now I don't see the electric car taking off except in a few niche markets."GM's decision seems all the more baffling because the Californian authorities announced before Christmas that they were rescinding a law that requires 2 per cent of all cars sold in 1998 (and 5 per cent by 2002) to be zero- emission - electric. Instead a much more modest target of 3,700 vehicles over three years has been set.Professor Rhys said, however, that there might be method in GM's madness. First, US cities could decide to penalise petrol-driven cars, or even exclude them from certain areas. Second, he said: "There is a latent fear there could be a breakthrough in electric technology, which means the big car makers want to stay in the market place."GM's decision could also bring closer the day when electric cars do indeed make commercial sense by helping keep alive research programmes that might crack the weight/range problem. US government funding of electric vehicle R&D, which has been generous, is coming under Republican pressure.

GM has eschewed new types of battery, and has not attempted to tackle the fundamental electric vehicle problem of high weight and limited range. The two-seater EV1 weighs a thumping 1.4 tons, 40 per cent of which consists of 26 lead acid batteries. The range is 70 to 90 miles, after which the car must be recharged for three hours.It is difficult to see why anyone would willingly swap a petrol-engined $35,000 vehicle for an EV1, according to Garel Rhys, motor industry professor at Cardiff Business School. Hondo Oil & Gas in the US, a partnership with Amoco, may be sold separately, analysts believe.. GENERAL MOTORS' announcement on Thursday that it is to put the world's first electric car into volume production does not, experts say, mark the dawn of an era of pollution-free motoring. It is simply the pragmatic response by a car giant to government and other pressures to make a product that remains as commercially unappetising as ever. The EV1 will go on sale later this year in Los Angeles, San Diego, Phoenix and Tucson.

It will cost about $35,000 (pounds 22,500) and be similar to the Impact, a test vehicle that GM developed - and almost dropped - three years ago. But a spokesman said: "Fifty Impacts were given out as test cars, and they were so successful we decided to go into production." The company is also producing an electric pick-up truck. Although the vehicles are in many ways technically advanced, the basic power system is the same as a milk float's. Its findings are due in May.Mining spin-off plans are still in their early stages, but will include the new Implats holding and Lonrho's 43 per cent stake, worth pounds 480m, in the Ghanaian gold miner, Ashanti, which was hived off in 1994.Other mining interests include coal in South Africa and gold in Zimbabwe and Uzbekistan. Recently they clashed over the planned merger of Lonrho's West and East Plats mines in South Africa with rival Gencor to create the new Implats, the world's biggest platinum concern.That deal values Lonrho's 32 per cent stake in the new Implats at pounds 400m. However, it is currently on ice while the European Commission probes effects on platinum markets. Some analysts think the spin-off may take them past 220p, at least.Mr Bock ousted Lonrho's founder Tiny Rowland last March and has since fought a running battle with the colourful tycoon in the courts and the press. Occupancy is improving and with the Granada bid for Forte, hotel values are getting a re-rating," one market source said.Brokers expect pre-tax profits of around pounds 150m before exceptional charges, and a dividend of up to 2.2p, when Lonrho reports on Thursday.Rising precious metal prices, higher hotel occupancies and rationalisation are largely behind the jump from pounds 112m last time.Lonrho shares have risen to 187p recently, valuing it at pounds 1.43bn, against the 85p paid by Mr Bock for his 18.6 per cent stake in 1993.

THE conglomerate Lonrho is set to announce that it is considering a pounds 1bn-plus demerger of its gold, platinum and coal interests when it reports sharply improved final results this week. If implemented, the spin-off would give investors shares in a separately quoted mining finance house as part of chief executive Dieter Bock's efforts to improve shareholder value. Lonrho Mark One would then be left running the group's extensive hotels, African food and other trading interests.Other disposals are also on the cards, including the UK's Dutton Forshaw Motors, possibly worth pounds 50m, which takes in the Jack Barclay Rolls-Royce and Bentley distributorship.But the market believes the group has shelved long-standing plans to hive off the hotels division, which owns the Metropole chain in the UK, Princess hotels in the US and the Caribbean, and safari lodges in Africa."Dieter Bock is quite pleased he didn't sell the hotels when it was first being considered. "Any loss of advertising breaks would cause an important fall in revenue, which is directly related to programme development," said Sue Eustace, head of European affairs at ITV.Satellite broadcasters would be affected less severely because they get additional revenue from subscription fees.. "Income from children's programmes would drop sharply and the funding for new programmes would dry up."Ironically, the review of the Television Without Frontiers Directive was inspired by France's desire to encourage more domestic production. The proposed ban is one of 250 amend- ments and is being sponsored by an Italian MEP, with support from the governments of Greece and Sweden.Among the UK companies most likely to be hurt if the amendments become law are GMTV, which airs the hit programme Power Rangers, and a host of independent producers. A spokesman for ITV said its companies were expecting a sharp fall in revenues, although their licences would force them to continue broadcasting to kids.ITV programmes such as Teleganticmegavision and It's Not Just Saturday would be under threat. In a key vote tomorrow, the European Parliament's culture committee is expected to approve an amendment to the Television Without Frontiers Directive, which would ban corporate sponsorship of children's shows and toy ads in the centre breaks of programmes. The proposal is fiercely opposed by the Paris-based World Federation of Advertisers, which argues there is no scientific evidence to show that television ads harm children.Toy manufacturers are also concerned about the proposals, although they think broadcasters would be harder hit.