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President Urges Automakers to Ramp Up Production of Ethanol-fueled Cars

President Bush pressed major U.S. automakers Monday to increase production of vehicles capable of running on ethanol and other biofuel blends as part of his proposal to reduce gas use. Robert Dinneen of the Renewable Fuels Association and Energy Tribune's Robert Bryce discuss the search for renewable energy.

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Notice: Transcripts are machine and human generated and lightly edited for accuracy. They may contain errors.

  • RAY SUAREZ:

    The president toured a mini auto show on the White House lawn today, part of his push to promote alternative fuels. Detroit's big three automakers displayed their latest designs for what are called flexible-fuel vehicles.

    The cars run on alternative fuels, such as E85, 85 percent ethanol and 15 percent gasoline. After a private meeting with the CEOs, the president said it was important for Detroit to build more flex-fuel cars to reduce dependence on imported oil.

    GEORGE W. BUSH, President of the United States: I found it very interesting that, by 2012, 50 percent of the automobiles in America will be flex-fuel vehicles. That means that the American consumer will be able to use gasoline or ethanol, depending upon obviously price and convenience.

    If you want to reduce gasoline usage, like I believe we need to do so, for national security reasons as well as for environmental concerns, the consumer has got to be in a position to make a rational choice.

  • RAY SUAREZ:

    The president has called for a big boost in the use of ethanol. Federal law requires more than 7 billion gallons of gasoline consumption come from renewable fuels by 2012. The president's goal is even higher: 35 billion gallons a year by 2017.

    But reaching that goal will be difficult. Fewer than 1 percent of the 170,000 fuel stations in the U.S. pump the E85 blend. Tom LaSorda is CEO of the Chrysler Group.

  • TOM LASORDA, CEO, Chrysler Group:

    There's about 1,100 pumps available today for ethanol fuel. And we said that needs to be increased across the nation, not to every station that's out there, but at a level that is competitive, where consumers can drive, let's say, two miles to get that kind of fuel.

  • RAY SUAREZ:

    Detroit CEOs say alternative fuels will help improve overall gas mileage. Both the president and the automakers have opposed legislation that would mandate higher fuel economy standards, known as CAFE standards.

    Rick Wagoner is the chief executive of General Motors.

  • RICK WAGONER, General Motors CEO:

    If the goals are to reduce the growth and the consumption of oil, to reduce oil imports and improve the environment, the opportunity is, first of all, in ethanol and biodiesel.

  • RAY SUAREZ:

    In Brazil, where President Bush visited earlier this month, most gasoline contains ethanol. But Brazilian ethanol comes from sugar cane, while U.S. ethanol comes from corn, partially subsidized and the favorite of politicians from farm states.

    Ethanol can be made from other sources, such as woodchips and switchgrass. The president has said he'll back funding research for those efforts.