Ford has said the increased price of bio-ethanol, an alternative fuel made from sugar cane, is a "constraint" for vehicle manufacturers.

"Technology and vehicle cost is not the constraint,'' Andy Taylor, director of sustainability and corporate citizenship at Ford of Europe, said in a speech at the Sugaronline World Sugar & Ethanol Conference in Geneva today, a copy of which was obtained by Bloomberg News. "The constraint is the price of bio-ethanol.''

Flex-fuel cars can run on petrol, ethanol or a blend of the two. E85, a fuel that is 85% ethanol, "needs to be 30% lower than [petrol] at the pump than mainstream,'' Taylor reportedly said.

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