GM has started production of the Saturn Vue gasoline-electric hybrid SUV in Mexico. It will be exported to the US and Canada.

The SUV will allow consumers to use an average of 27 percent less gasoline, General Motors de Mexico spokesman Mauricio Kuri said. The company will have the capacity to export about 6,500 of the vehicles a year, said Kevin Williams, president of GM's Mexico division.

GM will test 10 to 15 units of a slightly modified version of the SUV under the name Chevrolet Captiva Sport, and expects to determine if the vehicle can be sold in Mexico by mid-2008, Kuri told AP.