Saab

This week, a boutique builder of million-dollar supercars snapped up an established automaker with nearly 5,000 times its yearly output of vehicles. What's the deal? Is it a matter of super-hubris or another sign of a coming paradigm shift in the auto industry?

As the Saab logo on the hood attests, this is not a Mini Cooper from the future. It's the Swedish automaker's latest concept car—a next-gen compact that runs on a 1.4 liter, E85-capable turbocharged engine paired with an electric hybrid system. It draws on Saabs earlier Aero-X and 9X concepts, and follows on the heels of the Saab 9-4X BioPower crossover concept unveiled at the Detroit Auto Show in January.

With all the buzz about hybrids, it´s easy to ignore our homegrown alternative fuel: ethanol. Clean-burning and infinitely renewable-we´re talking grain alcohol-ethanol is dear to environmentalists and economists alike. The standard 85/15-percent ethanol/gasoline blend (E85) is widely used in Sweden, but there are only 313 E85 fueling stations in the U.S.