I know one of the guys at GM who is the head of the alternate fuels division. It's clear that they're pushing Ethanol (E85). He downplayed Bio-diesel, which he claims is "too expensive" to manufacture.
Being your Ford insider, I know that they're working on a Hydrogen-powered car, but I think the focus is on a flex-fuel vehicle that uses either Gasoline of E85.
Ford origionally had some sort of merger (or friendly relationship) with a Finnish company called iThink. This was their electric car offering - the sales of it were abyssimal. Funny thing that someone whould mention the electric cars on this thread, because out in one of the vehicle bays they had one of those iThink golf carts. Someone was working on it, but for what reason, I'm not sure.
One of the reason electric cars are a unworkable in the short-term has to do with a number of factors. First, they have an extremely limited range. Increasing the range means adding more batteries, which is, in a way, self-defeating. More load applied means more current is required to drive the motor. A second problem is charging the batteries - it takes an AWFUL amount of current, and time. Then there is the depreciation of the amount of "juice" a batter can hold over time. Like your cellphone battery, these things wear out over time. But while a cellphone battery is cheap, and easy to replace, a charge unit for a vehicle is huge, and EXPENSIVE. Another slightly annoying habit of most batteries is the fac that - on rare occasion - they can have an internal short during charging, overheat, and explode. I worked a company whose building burned down one day - a large, 1 story office building that held about 300 people. The fire burned so hot that the huge, 4-foot thick, steel I-beams that supported the roof bent like a licorice stick near the source of the flame. A a result of this fire, the entire building had to be demolished. The cause of the inferno? A cellphone battery exploded in it's charger overnight, while the building was empty.
Needless to say, you won't see electric cars dominating the highways for some time to come.
Hydrogen is a very tricky "substance" to handle. First, it's one of the most explosive elements in nature, which makes it a great fuel, but VERY dangerous to handle. Seeing that it really doen't occur naturally, it has to be extracted from something, and this costs money. Then, it has to be trasported in special containers that prevent leakage, and dispensed in a way that will prevent a mammoth explosion, simply because someone lights-up a cigarette some twenty feet away.
In my opinion (and I'm no expert), either E85 or Bio-diesel are the fuels of the future. I know that Canada is making Bio-diesel out of slaughterhouse parts, and rubbuish. Down in Missouri they've mandated that a percentage of pig waste (excement) be set aside for the production of either Gasoline of Bio-diesel; I'm not exactly sure which. Brewers are now getting involved in mass-producing E85 (a little known fact that American brewers were essential for the production of penicillin back during WWII). There are people home-brewing their own Bio-diesel for about $0.85 a gallon - they have kits you can purchase.
Despite the cries of the cost of producing either of the aforementioned fuels, historically when ANYTHING is placed in a mass-production environment, the price drops off significantly.
Hope this answers a few questions.