E85 Hybrids May Be Next Step in Fuel Efficiency

Washington DC May 8, 2006; The AIADA newsletter reported that according to a report in BusinessWeek Online, it will take a drop in price for hybrids to take on a major role in the market.

Chris Ellis of hybridcars.com writes, "For hybrids to take a major slice of the mass market, it will require the 'hybrid price premium' to be slashed from its current $3,000+ level to less than $1,000." How the price premium level can be lowered is a big topic of debate in the industry.

An upgrade of the current hybrid models to vehicles that can operate on any mix of gasoline and E85, or "flexible fuel hybrids," may be one solution that makes real sense, according to Ellis.

He cites the fact that E85 vehicles are already on the market and the recent move by the Senate to ensure extra pumps will be set up quickly. According to Ellis, "less than $200 is added to the production cost of a conventional gasoline vehicle in upgrading it to handle E85."