Does a change of loyalty towards E85 Ethanol Bio Fuel give an advantage to GM and Ford over the Japanese Automakers? The Japanese names have invaded the, US market share in 2005 giving a tough name to the GM and Ford. Well the US authorities are moving forward to set forth policies to move these bio fuels to larger markets than the Northern Midwest.

Well, this new rule seems to be good for the Americans as it may curt down the insane oil price spike giving a relief breath for them. If E85 Ethanol is brought to the markets along the Pacific US Coast and the Eastern Seaboard, will the average citizen do prefer the new E85 enabled cars with engines which can run either gasoline or ethanol or a mixture? Definitely, if they get the fuel, the demand for these cars will be high.

The next question is if such a demand arises, will the Japanese automakers be over shown by the US cars? It should be kept in mind that the Japanese Automakers already have many hybrid vehicle models and all are out of stock, with waiting lists and well.

The policies and incentives must be made fairly. The Japanese Automakers by making most models in in-country and doing much assembly in the Sates thus hire many Americans in states like Alabama, TX, OH, and CA. This to a big extent gives the Japanese cars the US tag. Ethanol E85 is highly useful and good for the economy, especially in the time of high oil price. GM and Ford must think of building cars of American’s desire if they want to stay on the game. No special rules or legislations will help them in hike in demand other than following the right time. In a free country like the US if the big auto giants want a fair deal, then it would be better for them to make cars that run on bio-fuel rather than depending on govt rules and policies.

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This entry was posted on Thursday, September 25th, 2008 at 1:40 pm and is filed under Luxury Cars. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.