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Chrysler to Step Up Flex Fuel Production

April 26, 2006

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Chrysler plans to increase production of ethanol-ready models in response to higher gasoline prices.

The automaker expects to sell about 250,000 flex-fuel vehicles in the next year and a half, a million by 2008.

Flex fuel vehicles burn gasoline or an ethanol-blended fuel known as E85.

Chrysler will begin offering flex-fuel versions of its Jeep Grand Cherokee, Jeep Commander and Dodge Dakota pickup, according to the company.

Chrysler already offers versions of a number of vehicles that can also run on ethanol, including the Sebring sedan and the Dodge Ram pickup. These have been sold almost exclusively to commercial fleet operators.

The new flex-fuel models will be sold through dealer showrooms.

Ethanol is a form of alcohol produced from the fermentation of crops such as corn or sugar cane.

Backers point to its renewable quality as an advantage over petroleum and point to the success of a 30-year government program to develop and promote the fuel alternative in Brazil.

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