GM to launch its first ethanol-capable hybrid-flex vehicles in Brazil By Reuters

SAO PAULO (Reuters) – General Motors (NYSE: ) said on Wednesday it will start producing its first flex-hybrid vehicles that can run 100 percent on ethanol or gasoline along with their batteries in Brazil.

Rival automakers Stellantis (NYSE: ) and Honda (NYSE: ) also announced plans this year to launch hybrid-flex vehicles in the South American country, where most cars can run on 100 percent biofuel made from sugar cane or corn, thanks to the strength of its large industry of ethanol.

GM said in a statement that two hybrid-flex models will be produced at its plants in Sao Paulo state, although it did not specify which ones they would be.

The US automaker makes other types of hybrid vehicles, but said it is committed to switching to all-electric cars in the long term.

GM has not said when it plans to launch the hybrid-flex vehicles, but a local union at its Sao Jose dos Campos plant said the first model will hit the market in 2025.

The expected production and sale of hybrid-flex cars in Brazil is part of a 7 billion reais ($1.42 billion) investment plan in the country that GM unveiled in January.

On Wednesday, the firm said 5.5 billion reais of that amount would be invested in its operations in Sao Paulo state, where it has two car plants.

GM is Brazil’s third-largest automaker by sales, according to year-to-August data from dealer association Fenabrave.

Brazilian Vice President Geraldo Alckmin told Reuters last year that hybrid-flex vehicles were a big asset to the nation’s decarbonization efforts.

GM also plans to expand the portfolio of electric vehicles it sells in Brazil, South America chief Santiago Chamorro said in a statement on Wednesday, as the automaker currently only offers an option exported from Mexico.

GM is also studying the possibility of creating a plug-in hybrid-flex model that could run on gas, ethanol or electricity, the statement said.