Tagged: automakers

The farm lobby has been pushing hard to increase the amount of ethanol allowed to be mixed into gasoline. And it seems like the Obama Administration is obliging.

The vast majority of today's ethanol comes from corn. The alcohol is mixed in gasoline to make it burn more cleanly.

Right now, the standard is 10% (a 10% ethanol, and 90% gasoline mix is most likely in your gas tank right now).

The EPA increased the allowed amount of ethanol to a 15% mix last fall for cars made after 2007.

Now, the Associated Press reports the EPA is poised to allow the 15% mix for more cars. From the AP:

Two people familiar with the decision said late Thursday the agency is expected to announce on Friday that 15 percent ethanol in gasoline is safe for cars manufactured between 2001 and 2006. Both officials requested anonymity because they were not authorized to speak publicly about the decision.

Automakers are getting ready for the big auto show in Detroit next week, but before they land there, many leaders in the auto industry are attending the Consumer Electronics Show (CES) in Las Vegas.

The show started today and will run through the 9th. Organizers says it's "the world's largest consumer technology tradeshow."

CNBC's Phil LeBeau says the show used to attract little attention from the auto industry, but that's changed since more electronic gadgets are finding their way into new cars and trucks.

LeBeau says the car makers are seeking new ways to increase their profits:

In car entertainment and connectivity, systems like Sync are increasingly must have add-ons for car buyers. And they have no problem paying for them. These systems drive higher transaction prices and greater profit margins.

Ford Motor Company President and CEO, Allan Mulally, will give a keynote address to the conference tomorrow at 11 a.m. CES Conference organizers say "Ford constantly innovates and launches new technologies, like SYNC with speech recognition, that make the driving experience safer through technology."

Fuel-makers blend refined gasoline with ethanol to make it burn more cleanly.

Corn-based ethanol has been considered a much better fuel additive since MTBE was found leaking into groundwater supplies (the CBS News magazine 60 Minutes did a report that led to MTBE's downfall as an additive).

But there's been debate on how much ethanol to allow in gas. The accepted standard has been a 10% mix, which is found in most gas across the country.