Alternative Fuels

Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG) Vehicles

The Opel Special Vehicles (OSV) division produces the Zafira 1.6 CNG and Combo 1.6 CNG and is Europe's biggest manufacturer of natural gas-powered vehicles. The OSV division is also the market leader in Germany. One way GME supports the natural gas trend in Europe is through targeted information campaigns; for example, a CNG newsletter is regularly published in Austria.

Opel CNG models set new standards in environmental protection and resource-saving mobility. The Verkehrsclub Deutschland VCD (German Transport Association) publishes a car environmental list. The Zafira 1.6 CNG was either first or second in the van/seven-seat categories in the last three rankings. The Combo 1.6 CNG was ranked seven and eight in the family vehicle class in the last two surveys.

Demand for CNG vehicles is rising in Europe due to increased fuel prices and the implementation by certain national governments of long-term policy frameworks. The production plan for 2007 is 18,000 units.

In addition to producing the vehicles, GME also is working to help expand the CNG infrastructure in Europe by collaborating with local and regional fuel providers. CNG infrastructure is now at 700 fueling stations in Germany and will rise to 1,000 in 2008. Austria and Switzerland are also expanding their number of filling stations and France has announced the construction of 300 before 2010. Western Europe now has approximately 2,000 fueling stations.

The Vauxhall Dual-Fuel (LPG/Gasoline) lineup offers significant reductions in exhaust emissions, including particulates and oxides of nitrogen. Dual-fuel vehicles provide an immediate opportunity for improved air quality and lower levels of greenhouse gas emissions. Since Vauxhall's pioneering role in the LPG market over five years ago, both the company and market have gained pace.

Many Chevrolet models are available as retro-fitted LPG/gasoline versions in many European countries. In Germany, the Chevrolet Rezzo LPG was selected the most cost-efficient vehicle in its class by the German automobile club ADAC.

In Korea, GM Daewoo produced 25,161 LPG vehicles in 2005, which accounts for 25 percent of total LPG vehicles produced in Korea. GM Daewoo, including the Daewoo Motor Company records, alone has produced 117,270 LPG units since the year 2002.

In Thailand, the Chevrolet 1.6 l CNG Optra with two body styles, sedan and station wagon, was introduced in the third quarter of 2006. Introduction is planned of the Optra (bi-fuel) and Colorado (dual-fuel) models equipped with the country-first OEM CNG systems. GM Thailand (Chevrolet) is the first and only company that offers the three-year/100,000 kilometer full warranty. Also, the Chevrolet Optra is sold in India.

In Australia, GM Holden introduced, in October 2006, the dual-fuel Alloytec V6 engine available in the VE Omega, Berlina, and Commodore V-Series special edition models. The 3.6-liter engine runs on both gasoline and LPG, and delivers seamless transition from petrol to LPG while driving, with only a small power difference. A dual-fuel VE sedan range can be more than 1,100 km; and if customers travel around 30,000 kms annually, running on LPG can save more than 1,000 Australian dollars/year depending on fuel prices and driving style.

Biofuels

United States

In 2006, GM also stepped up its efforts in the alternative fuels arena with an increased focus on the promotion of E85 ethanol in the U.S. E85 ethanol is a renewable fuel, made of 85 percent ethanol and 15 percent gasoline, which helps to reduce dependence on petroleum and reduces greenhouse gas emissions. Using E85 ethanol also has the ability to produce more horsepower and torque for the engine. It can also be a benefit to local economies as ethanol can be domestically produced from a variety of materials including corn, sugarcane, switch grass, cellulosic sources, and agricultural waste like corn stalks or rice husks.

General Motors has produced over two million flex-fuel vehicles in the United States and has committed to doubling flex-fuel production by 2010 in support of the Energy Future Coalition 25 X 25 (25 percent renewable fuels by 2025) project. In November 2006, we also announced that within three years our HUMMER brand will offer bio fuel powertrains across its entire lineup. HUMMER is the first automotive brand to make such a commitment. General Motors believes that E85 and other bio fuel offerings can provide energy diversity, significant environmental benefits, and support local jobs creation.

GM is working hard to educate consumers on the benefits of using E85 ethanol and launched a national advertising and marketing campaign, “Live Green, Go Yellow,” to help do this at the beginning of 2006. To increase the E85 ethanol infrastructure around the country and make the fuel available to more people, GM is also partnering with government, fuel providers, and industry to increase the availability of E85 ethanol throughout the U.S. As of late 2006, GM had announced 12 partnerships with states, fuel providers, and fuel retailers to locate up to 175 new E85 fueling sites around the country.

General Motors launched the “Live Green, Go Yellow” campaign in 2006 with emphasis on consumer education, expanded product offering (16 model offerings), and the development of the retail market through partnerships with federal and state agencies, ethanol producers, and fuel retailers.

General Motors installed yellow fuel caps that read “E85 or gasoline” in an effort to remind consumers that they have a choice of fuel each and every time they fill up. In addition, exterior flex fuel badging has been added to GM flex fuel products. Many of these best practices are now being adopted by other OEMs.

GM Europe

Today, all our new vehicles in Europe are equipped to operate on blends of five percent ethanol in gasoline (E5) and five percent biodiesel (B5). In addition, Saab now offers the benefits of E85 BioPower in two engine formats, both delivering enhanced performance as well as reduced GHG emissions. On sale initially in the Nordic markets, the UK and Ireland, the Saab 9-5 2.3t BioPower will also be available in other European countries. It is being offered in addition to the current 2.0t BioPower model, which is already established in Sweden as the best selling 'environmentally-friendly' vehicle. Both BioPower models combine the benefits of 'going green', through cutting GHG emissions, with the enjoyment of even sportier driving performance.

A further practical advantage of the BioPower formula allows customers to run on gasoline and/or E85 ethanol in any proportions without the need to make adjustments. The adaptability of Saab's powerful Trionic engine management system has facilitated re-programming to accommodate the different ignition timing and fuel/air mixture requirements of E85 ethanol. Trionic monitors fuel type after every visit to the filling station and automatically makes any adjustments necessary for running on E85 ethanoland/or gasoline in any combination. That means Saab BioPower drivers can also use gasoline, should E85 ethanol not be available. E85 ethanol has a much higher octane rating (104 RON) than gasoline (95 RON), and turbocharging allows the use of a higher boost pressure and more advanced ignition timing - giving more engine power - than is possible on gasoline without risk of harmful 'knocking' or pre-detonation. The only hardware modifications necessary are more durable valves and valve seats, and the use of bioethanol-compatible materials in the fuel system, including the tank, pump, lines, and connectors.

GM welcomes long-term alternative fuel policies, incorporating fiscal incentives (such as reductions in company car taxation, exemption from congestion charges, and reduced excise duties), fuel taxes based on well-to-wheels GHG emissions, and strategies to ensure widespread alternative fuel availability, along with continued research to improve the environmental performance of both vehicles and fuels.