Toyota looking to develop ethanol-powered vehicles for U.S. market

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(NaturalNews) As gas prices continue to soar, American drivers are desperate to find cheaper solutions for the morning commute. Automaker Toyota -- famous for pioneering gasoline-electric hybrid technology -- is prepared to supply that need by producing vehicles powered by ethanol and other alternative fuels.

"We're already developing vehicles that can operate in ethanol-rich Brazil," said Toyota North America President Jim Press on Tuesday. "We're optimistic that we can offer similar vehicles to American consumers."

Press did not expand on the company's plans for flexible fuels, but noted that Toyota would be expanding its hybrid technology, spearheaded by the Prius model, and is currently developing a plug-in hybrid.

"Hybrid technology can be teamed with every other promising technology to make it even more efficient and fuel-stingy, whether it's high-tech gas engines, clean diesels, biodiesel, ethanol, plug-in hybrids or hydrogen fuel cells," Press said.

Interest in hybrids has grown proportionately to skyrocketing gasoline prices, but the vehicles still represent a small portion of the overall U.S. market. Roughly 40 percent of the United State's oil still goes to gasoline demand for traditional vehicle use, government figures state.

While Toyota is enjoying some success in the hybrid market, American-based competitor Ford has reduced its focus on the technology, moving away from its proposed goal of building 250,000 hybrid vehicles annually by 2010.

Ford seems skeptical of the ideas that hybrids will improve the environment, reduce America's dependency on foreign oil, and that enough customers will participate to make it a reasonable investment.

Congress is still being lobbied by some U.S. automakers that have already committed to blended fuels. They want the government to provide tax breaks and other help in renovating plants to make hybrid production more cost efficient.

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