Ford Motor puts pressure on govt over e85 tax rates

E85 gasohol is expected to be 30 to 35 per cent cheaper than petrol or diesel.

The company has raised the proposal repeatedly over the past two years but never received a clear response.

"We want the government to show its commitment [to alternative fuels] by supporting vehicles using E85 instead of petrol or diesel," said Ziad Ojakli, group vice president for government and community relations.

E85 consists of 85 per cent ethanol and 15 per cent petrol. Gasohol fuels currently available in Thailand are E10, which contains 90 per cent petrol and 10 per cent ethanol, and E20, which has 20 per cent ethanol.

Ojakli said the government was the best party to decide the level of excise tax on E85-compatible cars. A relaxation of tax rates will help promote E85 use, not only saving energy, but also reducing the burden on consumers from steadily rising oil prices.

He now expects a clearer reaction from the government, because Thailand has been hurt by skyrocketing oil prices, with serious effects on both consumers and industry.

Susan Cischke, senior vice president for sustainability, the environment and safe engineering, said if the government showed a clear signal it would support the use of E85, her company would need only six months to adjust its engine production to distribute vehicles in Thailand that were able to use the fuel.

"We have already developed technologies for manufacturing vehicles that can use E85 and which can also use other fuels such as E10 and E20," she said, adding Ford had successfully developed E85 vehicles for markets in Brazil and the United States, where the fuel is widely used.

The Ford executives said Thailand was seen as a major market in Asia, which was reflected by its recent investment in manufacturing small cars here. It has also invested US$500 million (Bt15.96 billion) in China and an additional amount in India to expand production capacity and engine plants.

Ojakli said Ford was working on plans to launch corporate social-responsibility projects in Asia, particularly in Thailand, focusing on road-safety and global-warming issues.

The projects, backed by the Ford Fund, will be big enough to involve Ford dealers and suppliers, but details have yet to be finalised, he said.