Some b.s. from U.S. automakers

The U.S. automobile executives have spoken. Yes, they have told George W. Bush that ethanol is “the answer” to our government-caused fuel problems. This is a stunning statement that tells us either (1) these guys are idiots, or (2) they are lying. Perhaps we need (3), which is a combination of (1) and (2). Yet here are some quotes:

Bush met with General Motors Corp. chairman and chief executive Rick Wagoner, Ford Motor Co. chief executive Alan Mulally and DaimlerChrysler AG’s Chrysler Group chief executive Tom LaSorda. They discussed Bush’s support for flex-fuel vehicles and his administration’s proposal to reduce gas consumption by 20 percent in 10 years.

The three auto executives reiterated their commitment to double their production of flexible fuel vehicles to about 2 million a year by 2010.

Automakers said they could make half of their cars and trucks capable of running on alternative fuels by 2012 if there is enough availability and distribution of E85, an ethanol blend of 85 percent ethanol and 15 percent gasoline.

“This makes a big difference,” Wagoner said. “There’s nothing that can be done that can reduce the curb of growth of imported oil, and actually turn it down, like using E85.”

LaSorda said, “We think this is the answer for America to lower our dependence on foreign oil.”

The idea that we can somehow “solve” fuel problems by creating a fuel that uses more energy in its production process than it creates is ludicrous. Furthermore, ethanol cannot be moved by pipelines, and we do not have the road and rail capacity to transport the stuff without causing real disruptions elsewhere.

There is a reason that a free market does not support ethanol as a fuel, but Bush believes that the government can perform a magic act and overrule the laws of economics. Apparently, the auto executives believe the same nonsense. No wonder the Japanese are far ahead of these guys.

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2:05 pm on March 26, 2007