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Dow Chemical Plans Gradual Conversion to More Fuel-Efficient Cars

July 10, 2008

Dow Chemical is developing a fleet conversion program to cut its energy costs, according to the Detroit Free Press.


The plan calls for a more rigorous process of tracking fuel consumption from the company’s 3,000-vehicle North American fleet and the gradual conversion of that fleet to smaller, more fuel-efficient cars.

The conversion will include downsizing SUVs to smaller vehicles and eventually using hybrids.

Energy costs have had a big effect on Dow. The company expects to spend at least $32 billion on energy and oil derivatives for raw materials -- a four-fold increase from 2002, spokesman David Winder said.

In the last two months, Dow has announced major price increases across the board to offset skyrocketing energy costs.

Scott Watkins, a senior consultant at Anderson Economic Group, an economic consulting company, said other Michigan companies are using more fuel-efficient vehicles as they face a similar financial pinch.


“I would expect that there will be a long parade of companies moving to more fuel-efficient vehicles,” he was quoted as saying in the Detroit Free Press article.


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