Half of GM's cars in the US to run on biofuel by 2012

Our Corporate Bureau
08 February 2008

New York: General Motors Corp is planning on having 50 per cent of its cars in the US running on ethanol by 2012, according to recent reports that quoted senior company officials.

The reports quoted GM North America President Troy Clarke at the Chicago Auto Show as saying GM would have 11 ethanol capable vehicles on road by the end of the current year, and 15 vehicles by 2009.

GM's plans are based on the fact that its bio fuel producing subsidiary Coskata Inc recently entered into an alliance with ICM Inc to build a commercial plant that would produce cellulose-based ethanol on a large scale.

The plant is scheduled to open in the latter half of 2010 after which Coskata Inc is expected to substantially increase ethanol production. Hence by 2012, General Motors is counting on half its US vehicle volume running on ethanol fuel.

GM also plans to bring on road its first four-cylinder ethanol-capable model, the FlexFuel Chevrolet HHR, in 2010.

Coskata will soon announce the location of its ethanol producing plant and another plant in the next few weeks. Construction on both plants will start this year. ICM's production process currently is being used for half of all U.S. ethanol production.

Company officials said GM doesn't want to respond to the needs of the market but wants to anticipate them.