Car makers say no to more flex fuel vehicles

In the US a bill, which would see the majority of all automobiles manufactured in 2017 and after have the ability to run on biofuels, has been strongly opposed by car manufacturers.

The Open Fuel Standard Act of 2011 has come about in an effort by the Senate to try and keep ethanol tax subsidies in place and raise the tariff.

However, trade group The Alliance of Automobile Manufacturers, which represents Detroit's Big Three automakers and Toyota Motors, in addition to eight more, is putting up a fight against the bill.

The act would require that 95% of all petrol cars use petrol, 85% ethanol, 85% methanol, or a combination of these fuels.

Automakers are against the bill, claiming more than 8 million flexi fuel cars are already present on US roads. Despite being able to run on E85 or fossil petrol, it is estimated they consume no more than one tank of E85 a year.

'At a time when many policy makers are questioning the costs of ethanol to taxpayers, the environment and the food supply, effectively imposing a tax on consumers for a car that can run on ethanol and methanol, regardless of consumer demand and fuel availability, makes no sense,' says the opposing letter to member of Congress.

The letter was signed by the American International Automobile Dealers Association, American Petroleum Institute, Engine Manufacturers Association, Motor & Equipment Manufacturers Association, National Association of Manufactures and US Chamber of Commerce, as well as other groups.

But ethanol supporters are in favour of the bill, which 'provides consumers with meaningful fuel choices, including American-made ethanol', says Brian Jennings, ethanol executive vice president for American Coalition.

'With gas prices hovering at four dollars a gallon, and with oil companies unapologetic about massive profits, and refusing to even consider changes to their favoured tax status, it is time for us to create real competition in the fuel marketplace, and this legislation does just that,' Jennings continues.