The federal rule, which simultaneously encourages automakers to develop alternative-fuel vehicles while avoiding penalties, would be easier to comply with with more flex-fuel vehicles than hybrids. Ut would be a simple matter for Ford or any other automaker to update its vehicles to accept the ethanol and retool its factories to build them. Hybrid systems, with their complex gasoline-electric systems, are considerably more expensive to produce.
Toyota, the premium manufacturer of hybrid vehicles, has stated it will also pursue ethanol-powered engines as well as research into plug-in hybrids.
[Source: New York Times via treehugger]