Scott Morrison is the owner of the City Garage chain in North Texas and he related the story of his technical director's run-in with ethanol; in December he filled up his E85 Flex Fuel Chevy Suburban at the Exxon station in Ovilla, just south of Dallas. His Suburban died on the spot, because even an E85-equipped vehicle will not run on the 100% pure ethanol that Exxon station was pumping that day. In that case it was not Exxon's fault but a mistake at the distribution center, and Exxon (XOM) quickly made good for the cost of repairs.
On Jan. 16 of this year, Lexus ordered a massive recall of certain 2006 to 2008 models, including the GS Series, IS and LS sedans. According to the recall notice, the problem is that "Ethanol fuels with low moisture content will corrode the internal surface of the fuel rails." In layman's terms, ethanol causes pinpoint leaks in the fuel system; when leaking fuel catches your engine on fire, that's an exciting way to have your insurance company buy your Lexus. Using ethanol will cost Toyota untold millions.
An Unpublicized Trend
Though the media is ignoring it, one can easily find many stories on BMW (BMWG.DE) blogs relating similar problems with fuel systems damaged by the use of ethanol. Certainly that was the case with Christi Jordan and her 2007 Mini. For weeks it was difficult to start; Moritz BMW in Arlington, Tex., inspected it and found severe carbon buildup inside the engine. On her second trip to the mechanics they decided to test the ethanol content of Christi's fuel and found it was much higher than the federally mandated limit of 10%. This time the fuel pump had been destroyed by the ethanol. The repair bill came to $1,200: As in all cases where vehicles are damaged by ethanol, legally the factory warranty no longer applied.
Read the whole story @ Business Week