While the Acura Advanced Sedan Concept, Porsche 911 GT3 and the Audi R8 are sure to grab crowds at the Toronto International Auto Show, environmentally-friendly cars are overwhelmingly the new focus of the industry.

Even luxury retailers like BMW are getting into the mix.

The BMW Hydrogen 7 is the world's first hydrogen-drive luxury performance automobile. It features an internal combustion engine that allows the vehicle to run on either liquid hydrogen or gasoline.

On hydrogen, the vehicle essentially emits nothing but water vapour.

Despite the effort, it won't reach Canada yet as it's a limited-production model set for release only in the U.S., Europe and Japan later this year.

Lindsay Duffield, President and CEO of BMW Group Canada, unveiled the car at the show and said that more hydrogen refueling stations need to open in Canada before the products can become mainstream.

Mercedes took home the Automobile Journalists Association of Canada (AJAC) award for Best New Technology for the new E320 BlueTec diesel technology.

The breakthrough clean diesel technology blends fuel efficiency to rival a hybrid without sacrificing power. The car is designed to reduce the soot and pollutants that are common with diesel engines.

Chief Executive Officer of Mercedes Benz Canada Marcus Breitschwerdt said the technology was so good that a white handkerchief stuck in the muffler for five minutes would come out without any change in colour.

Green Motors

General Motors Vice-Chairman Robert Lutz made the trip north to talk all things environment. He said his company has 12 hybrid models approved for the market, five which will be available by the end of 2007.

Lutz said while most people are now focused on hybrid cars, many forget about the benefits of fuel efficiency.

"Over the next year of sales in Canada, GM vehicles sold with Active Fuel Management will save about the same amount of fuel as all of the hybrids sold in Canada put together by all manufacturers," said Lutz.

He touted the Chevrolet Volt concept car as a way to get to work without ever having to use gasoline.

"If your roundtrip to work is about 64 kilometres or less, you can do all of it in pure electric drive everyday," said Lutz. "Simply plug in your car at night to recharge it, no stops for gas and zero emissions."

The small gasoline engine, which acts as an onboard generator, can extend the vehicles range to up to 1,000 kilometres, said Lutz.

Toyota was also recognized for its leadership in the field of fuel economy. The Yaris, Prius and Sienna each won the EnerGuide Award -- which recognizes the most fuel-efficient vehicles for 2007 -- in there field.

Ford, which won EnerGuide Awards for their Ranger and Escape Hybrid, was also showcasing their SynUS Concept.

Deemed a mobile "Urban Sanctuary," the vehicle features a diesel engine with a transmission that is made to run on a 20 per cent mixture of environmentally conscious, Bio-Mass diesel fuel.

Showing strong support for the car industry initiatives, the federal government announced new funding at the show.

Transport Minister Lawrence Cannon and Environment Minister John Baird said the government will be giving $36 million in funding towards environmentally friendly cars: $21 million to encourage consumers to purchase environmentally friendly vehicles, and another $15 million to help industry produce them.

For a full gallery of all the latest concepts, premieres, and eco-friendly cars click here.

The auto show is being held at the Rogers Centre and the Metro Toronto Convention Centre. It is open to the public from Feb. 16 to Feb. 25, 2007.