Bad News For GM - Good News To Us At TheE85Scam.com

This week has indeed been, shall we say, troubling for General Motors. On Monday they released news that they are going to help state governments promote and add E85 gas pumps at stations. With the stocks plummeting and the faith in their stock holders all but gone, We are wondering where they will get the money to do this.

Then Wednesday came about and General Motors announced that it is reducing, if not eliminating, the medical insurance benefits of its white-collared work force (they can not do that to the blue-collared work force because they gave the control of benefits, and a large sum of money to the United Auto Workers to control and take over blue-collar benefits this last contract, which may have saved the blue-collar workers benefits, but in our opinion ironically hurt GM and helped contribute to their current financial liquidity issues).

So is this where the money is going to come from to continue heavy investing into the "FlexFuel" division and push E85? Maybe, it could be just coincidence too.

But, that is just the preamble to the actual post here we had in mind. So here is the bad news/good news story...
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J.D. Power And Associates 2008 Alternative Powertrain Study

NOTE: Below is only an excerpt, but you can read the whole article by clicking the link above.

"The study also finds that the percentage of consumers who are considering a hybrid-electric vehicle is up from 50 percent in 2007 to 62 percent in 2008. Consideration for flexible fuel (E85) capable vehicles—which are designed to run on gasoline or a blend of up to 85 percent ethanol—has decreased slightly from 2007 (47% vs. 43% in 2008), while consideration for clean diesel demonstrated the most notable decline from 23 percent in 2007 to only 16 percent in 2008. The drop in consideration for diesel technology may be attributed to the substantial increase in the relative price of diesel since 2007."
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Like we said, good news to us. But this is another blow to the mighty GM. Are they, already on the financial brink of disaster (a one time impossible thought), once again chasing a declining market? They are putting more into E85 FlexFuel programs, but we feel that they should continue on projects like the Chevy Volt instead.

Once E85, Ethanol, FlexFuel, Corn Gas, or whatever you want to call it, gets exposed for the farce that it is to all the public, we think that it will become just another history lesson. Then again, if history repeats itself, it probably won't. Not sure about you, but our history books were only filled with positive things in U.S. History, not our failures.

By the way, if you want to download a PDF of J.D. Power's Report, Click Here!

Of Course GM Has No Motive To Do This, Right?

Recently in the news, in fact as recent as last week, rumors and murmuring were heard on Wall Street about the One Time Blue Chip Giant, General Motors, falling below $10 a stock and cash reserve problems. Let's just say that regardless what fantastic story a skilled accountant can tell with the company books, once the "liquidity" of a company is questioned on Wall Street, it is never good conversation.

So it is no surprise to me, with as much money as GM has vested into the Ethanol/FlexFuel program, that they are willing to assist state Governors as to where to place new E85 pumps. Simple business math, more pumps available, more likely to sell FlexFuel vehicles. With that in mind, keep an open thought process when you read this article...

GM, Governors Will Work to Expand Ethanol Distribution in U.S.
by Edward Klump

"July 13 (Bloomberg) -- General Motors Corp., the biggest U.S. automaker, and the National Governors Association said they are working on expanding the distribution network for E85 ethanol in preparation for selling ethanol from non-grain sources.

The plan calls for GM to assist states in finding appropriate place to put ethanol pumps, according to a statement issued today. The Detroit-based company has helped bring 300 E85 pumps online in 15 states during the last three years. There are fewer than 1,700 pumps for E85, which is 85 percent ethanol and 15 percent gasoline, in the country out of about 170,000 gasoline stations, GM said.

Having more E85 pumps will provide owners of flex-fuels vehicles better access to the fuel. GM said it will make 50 percent of production flex-fuel capable by 2012, if the infrastructure is moving ahead. The company also has investments in two ethanol companies, Coskata Inc. and Mascoma Corp.

`This collaboration with GM will help increase the availability of E85 around the country, providing more consumer choice and moving us toward a more secure energy future,' Minnesota Governor Tim Pawlenty said in the statement."

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Remember the old saying about a cloud and silver lining? There was one if you were watching carefully in this article. It was, "preparation for selling ethanol from non-grain sources".

So maybe, just maybe, they are starting to realize that E85 sucks to begin with, but if you HAVE to produce it, save our grain and find alternative production. Garbage, waste water, and other things being looked into now. The U.S. alone (not to mention the Garbage we take in from Canada) should produce enough garbage to create vast amounts of ethanol, one would think.