McCain's "Lexington Project" includes a $5,000 tax credit for purchasers of zero carbon emission cars.

He would also offer a $300 million prize for development of a commercially viable plug-in hybrid or fully electric car.

GM is developing the Chevy Volt, a new generation of electric car, at the tech center in Warren.

McCain said that the United States should follow Brazil's lead on flex-fuel vehicles. Brazil took only three years to go from having 5 percent of its new cars flex-fuel to 70 percent.

The U.S. carmakers have committed themselves to having half their fleets flex fuel by 2012. McCain called on them to speed up the timetable.