The increasing subsidies and government support for biofuels has led a Texas Chevrolet dealer to establish its own biofuel station. Classic Chevrolet/HUMMER in Dallas, Texas has installed nine biodiesel and E-85 pumps in a station adjacent to its quick lube shop. The dealership spent $500,000 to outfit the station for the benefit of Chevy and HUMMER customers interested in purchasing trucks and SUVs powered by biofuels.
The dealership worked with Texas-based CleanFUEL Distribution to receive the latest biofuel technologies for their new station. The opening of Classic’s station parallels alternative fuel developments within Chevrolet and HUMMER in upcoming years. General Motors has promised to increase its FlexFuel fleet two-fold by 2010 with 50% of its vehicles running on E-85 by 2012. The motor company will have 15 FlexFuel models in dealerships like Classic Chevrolet/HUMMER for the 2009 model year. The move by Clasic to add an E-85 pump right on the lot in addition to the off-lot station means that customers can choose any of these FlexFuel models and get a full tank of gas with purchase.
An important development underneath the surface of this new biofuel station occurs within Classic’s Enterprise Rental chapter. Enterprise is devoting 25% of its fleet to FlexFuel vehicles within the dealership. The symbiotic relationship of Classic and Enterprise shows the snowball effect of GM’s FlexFuel program in high-volume areas like Dallas.
Classic’s investment in biofuel pumps is the first of its kind in the United States and shows the influence of biofuels on the auto market. This dealership was the leading dealer of Chevy trucks in 2007 and promotes HUMMER SUVs that remain popular among Dallas residents. There are several reasons why dealership management went with biodiesel including Chevy and HUMMER’s upcoming releases as well as the desire to keep customers happy while biofuel stations are built in the area. The biofuel pumps are akin to courtesy vans, rental vehicles and other amenities offered to valued customers.
The main problem for GM and other automakers manufacturing biofuel vehicles is whether Classic is an exceptional case. The fact that Classic has the financial wherewithal and high volume to support E-85 vehicles does not mean that a dealership in Wyoming, California or Vermont could do the same. Classic Chevrolet/HUMMER may remain the first dealership with a full biofuel station for a long time if other dealerships and auto companies do not invest in a private ethanol infrastructure.
