In an interview, Co said that Ford wants to be the first to introduce flexible fuel engines in response to the governments move to encourage alternative fuels and save on expensive imported crude oil products.
Fords flexible fuel engine would use ethanol made from sugar and would be able to use a blend of up to 20 percent.
Co, however, refused to disclose what model would carry the flexible fuel engine. "Well surprise you," was all Co would say.
Last December 2005, Ford Motor Co. had announced that it is investing P1.1 billion this year for a flexible fuel engine assembly line in the Philippines.
The Philippine flexible fuel assembly plant would be the first flexible fuel assembly in the Asian region.
It would also take the Philippine auto industry to a new level, making the Philippines the center of excellence for flexible fuel.
The P1.1 billion would translate to the production of 100,000 engines over the next five years valued at about $100 million. Start-up activities would be undertaken in the first quarter of this year with full production to begin before the end of this year.
About 80 percent of the 100,000 units seen assembled over the first five years of production, or 80,000 units, would be shipped out of the country to service the Asian market.
The remaining 20,000 units would be sold to the domestic market. Initially, the flexible fuel engine would be installed in the Focus model.
The P1.1-billion infusion would bankroll the extension of the existing plant as well as the importation of new equipment to be used for this new assembly line.
About 90 workers would be directly employed for this new assembly line.
Ethanol is an alcohol-based alternative fuel produced by fermenting and distilling starch crops that have been converted into simple sugars.
Ethanol is most commonly used to increase octane and improve the emissions quality of gasoline.
Flex-fuel engines would allow vehicles to run on regular unleaded gasoline and alcohol fuel, categorized as bio-ethanol (gasoline and a minimum ethanol content/blend of at least 20 percent) and bio-diesel (diesel and a minimum coco-methyl ester content/blend of at least five percent).
Current engines only run on a blend that has up to 10 percent ethanol content.