Toyota looks at ethanol car development

Toyota, a pioneer in the development of popular gas-electric hybrid vehicles, is considering a US investment in cars that run on ethanol and other alternative fuels, the automaker's North American president says.
The disclosure from Jim Press introduces new competitive pressure on Ford Motor Co, General Motors Co and Daimler/Chrysler's North American Chrysler unit, all of which have lost market share to Toyota and other foreign rivals partly capitalising on American's appetite for more fuel efficient vehicles.
"We're already developing vehicles that can operate in ethanol-rich Brazil and we're optimistic that we can offer similar vehicles to American consumers," Press said.
Ford, GM and Chrysler have recently expanded their interest in crop-based alternatives, or flexible fuels.
These include a product more widely sold that is made with 85 per cent ethanol.
The Detroit-based automakers pledged commitments to blended fuels and have asked US Congress for tax breaks and other help to retool plants and broaden consumer access to those products.
Press did not elaborate on Toyota's plans for flexible fuels but noted that international auto companies have been behind the industry's overall growth.
While Toyota plans to explore alternative fuels, it is also boosting its signature hybrid technology that led to the development of the top-selling Prius.
Press said Toyota would pursue a plug-in hybrid model, currently an experimental design that can be charged through a standard electrical outlet.
Toyota believes the overall hybrid platform will be a centrepiece of engine design for years and will support a range of fuels.
"Hybrid technology can be teamed with every other promising technology to make it even more efficient and fuel stingy, whether its high-tech gas engines, clean diesels, bio-diesel, ethanol, plug-in hybrids or hydrogen fuel cells," Press said.
Interest in hybrids has accelerated as gas prices soar but vehicles with gas-electric engines are still a fraction of the overall US market.
Gasoline use accounts for about 40 per cent of US daily oil demand, government figures show.
Ford has rolled back its commitment to build 250,000 hybrids a year by 2010.
Ford is unconvinced hybrids are the answer for reducing US dependence on foreign oil, improving the environment, and winning enough customers to make the technology a viable business option.
Separately, Press said Toyota is always open to alliances and that any three-way deal between GM, Renault SA and Nissan Motor Co would create competitive pressures that would make Toyota stronger.
Under pressure to reverse declining market share and invigorate the company's massive restructuring, GM's chief executive met last week with the head of both Renault and Nissan to review a possible alliance.
Toyota and GM already jointly operate a plant in California, but Press said there have been no talks about expanding their ties