I'm hoping a member or two here who works in the Auto industry will comment as I'm not sure how I feel about this article.
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It was smiles all around as the automakers announced they would make half of America's vehicles ethanol-ready by 2012. "If you want to reduce gasoline usagelike I believe we need to do so for national-security reasons as well as for environmental concernsthe consumer has got to be in a position to make a rational choice," said a beaming Bush.
But there's a dirty secret about clean cars. The policies for flexible-fuel vehiclesthose that can run on mixtures of gasoline and more than 10 percent ethanolare written in such a way that they result in a number of unintended consequences. One result is that automakers gain some leeway in meeting fuel-economy standards if they produce flexible-fuel cars and trucks. So Detroit's automakers have been pumping out hundreds of thousands of the vehicles, even though most consumers have no access to alternative fuels because they're available at only a fraction of U.S. gas stations.
Here's why that's an issue. Automakers need to meet certain government standards for the fuel economy of their fleets. For flex-fuel cars, fuel economy is calculated based on the assumption that their owners use 50 percent gasoline and 50 percent ethanol. But the reality is that just 1 percent of the nation's flexible-fuel vehicles actually use what's known as E8585 percent ethanol and 15 percent gasoline. The remaining 99 percent are using good old-fashioned gasoline.
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