Honda changes its mind on ethanol

The Wall Street Journal reports Honda is considering ethanol and more natural gas-powered cars. In the past Honda has not been positive on ethanol. Here is Honda's U.S. sales chief John Mendel, speaking in August 2006, when asked about making flex fuel cars:

We're not against it. ... In the list of priorities right now, we haven't moved it up the list. It is less efficient from a fuel-economy standpoint.

Why is ethanol suddenly a priority a little over a year later? The ethanol glut currently in the market and the energy bill's inclusion of an even greater push for biofuels, makes adding a $100 worth of technology to your car a no-brainer.

The Wall Street Journal article also mentions a new affordable Honda hybrid in 2009, which seems to be the CR-Z. The only thing new seems to be that by "affordable," Honda means a hybrid premium under $2,000 which sounds a little higher than the $1,750 premium Honda has said before.

The Wall Street Journal also says Honda is considering diesel for larger cars to comply with new fuel efficiency requirement in the pending energy bill. They would not elaborate on which diesel technology is under consideration.

[Source: Wall Street Journal]

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