[DGthe3]

The most promising solution to CAFE as I see it is E85, so long as the loophole stays open. The assumption is that a flex fuel vehicle will use ethanol 50% of the time, causing its fuel economy numbers to double. A Cobalt averaging an actual 25 mpg ,with a flex fuel engine would get rated at 50 mpg. The Volt, I think I have heard that it will get 50 mpg when using its engine but would be rated at 100 because of its electric only propulsion method. So 100 mpg regular = 200 mpg rating on flex fuel. That would give GM a nearly 5 mpg 'bonus' for its vehicles, based on the sale of 100k of these Volts.

Odds are this loophole will get tightened up soon, perhaps changing the assumption to 25% running on ethanol. That still helps a great deal because nearly any car will then get the desired average economy numbers, all it needs to do is get 26 mpg or better then have a flex fuel engine. Basically, it is technically possible for GM to exceed the 2020 CAFE by the end of 2010 since CAFE doesn't care if your car is actually using ethanol or not.