Normal Operation

Hopefully everyone has recovered from Christmas, both physically and financially, the financially part tends to take a little while longer.  Though we did not have a white Christmas, this week has brought some typical winter weather to our area, save for large amounts of snow.  With extreme cold and icy, slick road conditions come some perceived vehicle service issues. 


Traction Control Warning Lamp



Christmas Season

As the day quickly aproaches and the end of 2011 creeps up right on its tail, I just wanted to take a moment to thank all of our customers for helping to make 2011 another great year at Krug Ford!

Power Outage

So we were just sitting here minding our own business, last Wednesday, fixing cars and trucks like we do and ZAP, we are all sitting in the dark.  It made me realize three things I was thankful for at that moment, I had power at my house, I do not head west on Grand River to head home and last and most important my car starts everytime I turn the key.

Product Driven Approach Helps Ford Distance Itself from its Competitors.

During the tumultuous times that have plagued the auto industry over the last few years, punctuated by declared bankruptcies at General Motors and Chrysler early in 2009, the Ford Motor Company has used a product driven strategy in order to set themselves apart from the competition and make gains in the face of a downturn that has affected almost the entire automotive industry.

E85: The Dollars and Sense of Ethanol

With the cost of gasoline increasing on a daily basis, many consumers have started to take a serious look at alternative fuel options for their vehicles.  These options include hybrid vehicles, (those that run on a combination of gas and electrical power), fully electric cars like the Nissan Leaf, Chevy Volt, Ford Flex, Ford Fusion and the Ford Focus, or flex fuel vehicles, those that can run on gasoline and/or E85 ethanol.  As shifting to a hybrid often includes a drastic cost increase, and as electric powered vehicles are still in their infancy, the most common alternative for most consumers is to take advantage of flex fuel capabilities, if their vehicle is so equipped.  If the latter category describes your car or truck there are some key things to keep in mind before jumping headfirst into the world of Ethanol.  If you are not sure if your vehicle is flex fuel capable there are a few simple steps that can help make that determination.  Flex fuel vehicles (FFV) are typically marked in a variety of ways, either by a separate emblem on the fender or tail gate, the fuel cap might also indicate fueling options.  If neither of these options applies, a quick run of your VIN at a local dealer can also yield this information.

Before delving into a chemistry and math refresher I would like to describe some of the larger scale market influences and effects that cultural shifts in energy options can cause.  First we have all been led to believe that the price of a barrel of oil is a direct indicator of gas prices at the pump, this is not entirely accurate.  According to the Department of Energy, each dollar spent on gasoline is made up 65% by the cost of crude oil, 14% by refining costs, 13% from state and federal tax and 8% for distribution and marketing.  These are averages but can vary based on some outside factors. If you live in an area near oil refineries you most likely will pay less as it costs less to get that gasoline to the gas stations in your community.  Crude oil prices fluctuate daily based on world events, natural disasters and market speculation.  Taxes, in this equation, are a national average, in Michigan we pay $.19/gallon, which compared to Washington’s almost $.38/gallon is not so bad, the lowest state tax is in Alaska at $.08/gallon. In the summer, gasoline costs increase as a product of greater refining costs for summer blend fuel, combined with the increased demand of summer traffic and road trips.  The last factor in gasoline price is station mark-up, hence the differences one would see up and down Grand River for what effectively amounts to the same product.

Ethanol also has a host of factors influencing its cost, the substitution in its equation; however, is corn in place of crude oil.  Corn is the main ingredient in US ethanol.  As individual consumers we may never see the impact of using E85 in a tank or two; however, a market shift towards E85 will cause an increased demand for corn.  An increased demand for anything causes prices to increase, thus everything that uses corn will increase accordingly, beef prices, poultry prices and milk prices, to name a few, would all increase as a product of a spike in the price of corn.  Before you get scared away from trying an alternative fuel, keep in mind that it would take nothing short of a populist rebellion or a legitimate national energy policy to move the market away from gasoline dependency, if gas prices keep rising though we may witness one or the other.

The real question that most consumers ask themselves is, “Will using E85 save me money?”  The answer to this question can be gleaned with a simple conversion percentage.  


The US National Institute of Standards and Technology has developed a gasoline gallon equivalent (GGE) to accurately compare the potential energies of a variety of fuels.  Using that table I have come up with a simple percentage that can be used to quickly determine if E85 is the economical choice for consumer fueling needs.  All fuels generate energy when combusted, this energy content is measured in British Thermal Units (BTU’s) or Joules (J), for the sake of math we will stick with BTU’s.  I have used data for an average gallon of gasoline, keep in mind oil companies can mix up to 10% ethanol by volume to gasoline, and so with this accounted for an average gallon of gas has 102,600 BTU/gal.  E85, 85% ethanol blend sold at various fuel stations has 81,800 BTU/gal.  This means that E85 will on average cause consumers to see a 20% decrease in average fuel economy on a tank of E85 versus regular unleaded gasoline.  This yields an 80% conversion percentage that can be used to see if gasoline or E85 is the economical fuel choice at the time.

So how does this relate in a real world example?  If gasoline is $4/gallon, E85 will need to be less than $3.20/gallon to become a cost saving fuel choice, at this rate the cost decrease outweighs the diminished fuel efficiency.  If gas is $5/gallon and E85 is $4.20/gallon, then gasoline should be the cost conscience choice as the price decrease will not outweigh the diminished fuel efficiency.  So if you have an FFV, the next time you pull into the pump, multiply the gasoline price by .8, if the E85 price is less than the number you come up with, it is a cost saving option, if it is more than the number you came up with it is better to stick with gasoline.

A couple of things to keep in mind is that these are averages weighted to the consumer, but driving habits still play a huge part in the equation, www.michigangasprices.com/Tips.aspx has some very good tips for the fuel economy minded driver.  Also, flex fuel vehicles do better on tanks that are almost completely one type of fuel or another, yes they can be mixed; however, my math becomes less accurate if adding 10 gallons of E85 to 10 gallons of 87 octane already in the tank.  Lastly and most importantly, if you do not have a flex fuel vehicle, do not put E85 in your tank.  There seems to be a consumer misconception that E85 is some sort of economy class or 85 octane gasoline, this is false.  E85 is simply put an 85% grade of grain alcohol.  E85 used in a vehicle not designed for it can cause some annoying and possibly costly vehicle issues.  If you are ever in doubt as to whether or not you have a flex fuel vehicle, contact your dealer.  Hopefully, this will help all consumers make economic and responsible fuel purchasing decisions.


Dan Retherford
Service Manager
Krug Hilltop Ford