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Wednesday June 14 4:03 PM ET
GM to Build Ethanol-Burning SUVs
By Michael Ellis
DETROIT (Reuters) - General Motors Corp. (NYSE:GM - news), trying to counter the
gas-guzzling image of sport utility vehicles, said on Wednesday it will build next year
full-size SUVs capable of running on a variable mix of gasoline and ethanol.
Beginning with the 2002 model year, all Chevrolet Suburbans and Tahoes and GMC
Yukons and Yukon XL's with the Vortec 5.3 liter V8 will be equipped, at no extra
charge, with the E85 flexible fuel system that can run on pure gasoline or a blend of up to
85 percent ethanol.
The all-new Chevrolet Avalanche full-size pickup truck with the standard 5.3 liter V8 will
also have E85 capability beginning in the 2003 model year.
Flexible-fuel vehicles burn slightly cleaner and use less
gasoline. Ethanol, made from corn, is a renewable
resource.
The flexible-fuel vehicles also help the automaker sell
more trucks while still meeting stringent U.S. standards on
corporate average fuel economy.
Because ethanol is only available at a limited number of filling stations, consumers may
never use the flexible fuel system. However, the U.S. government allows GM and other
manufacturers such as Ford Motor Co. (NYSE:F - news) and DaimlerChrysler AG
(NYSE:DCX - news) (DCXGn.DE) that make flexible-fuel vehicles to count them as
being more fuel efficient.
The automakers say the flexible-fuel credits encourages the industry to build more
ethanol-burning vehicles, which should in turn increase the number of filling stations
offering ethanol.
More than 100 filling stations offer ethanol now, up from 40 in 1998.
Ford is investing $1 million to help add 40 ethanol stations in the Minneapolis, St. Paul
area and another 10 in the Chicago area, a Ford spokesman said. The automaker is
considering investing more to add ethanol stations in the Milwaukee, Denver and
Louisville, Ky. areas.
GM's full-size trucks will join its Chevrolet S-10 and GMC Sonoma small pickups with
the E85-compatible 2.2 liter four-cylinder engine that went into production in late 1999.
By the end of the 2004 model year, GM will have produced over one million trucks with
flex-fuel capability.
Ford sells Ranger compact pickup trucks and the Taurus mid-size sedan with 3-liter V-6
engines that also run on a variable mix of gasoline and ethanol. DaimlerChrysler's Dodge
and Chrysler minivans with 3.3 liter engines also run on an ethanol mix.
Meanwhile, the American International Automobile Dealers Association (AIADA) on
Wednesday said some types of pickups, minivans and SUVs would be eliminated from
the market if the U.S. Congress mandated an increase in fuel economy standards for light
trucks.
Rather than mandating increases in the fuel economy standards, the AIADA supports
incentives for the purchase of highly fuel-efficient vehicles.
``Congress should let consumers choose what vehicles best meet their transportation
needs, rather than pass fuel economy standards that force popular vehicles from the
market,'' said AIADA President Walter Huizenga.
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