Ford lobbying for expanded biofuels program

Ford Motor Co. will push for more tax incentives and the broadening of a recently adopted biofuels law in the Philippines to encourage the use of alternative fuel vehicles, said Henry Co, president of Ford, Philippines. He said the company will lobby to increase the ethanol blend in gasoline to 20% by 2015. The Philippine legislature in November adopted a biofuels bill, which was signed by the president in January, requiring blending of up to 10% locally sourced ethanol by 2010. A specific excise tax exemption for diesel fuel has created “a gap in pricing of diesel and gasoline and shifted consumers towards using diesel,” Co added. Ford launched in early 2006 the first-ever vehicles that can run on flexible fuel–either on pure gasoline or blended with 20% ethanol. The company is enjoying preferential tariffs for parts and components not locally available as an incentive for its Php1.1 billion (US$22.46 million) flexible-fuel vehicle project under the Motor Vehicle Development Program. The project would have a production capacity of 100,000 engines over the next five years, valued at about US$100 million. (January 4, 2007)