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

SAO PAULO (Reuters) – General Motors (NYSE:GM) said on Wednesday that it would begin producing its first-ever hybrid-flex vehicles that can run on 100% ethanol or gasoline alongside their batteries in Brazil.

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

GM said in a statement that two hybrid-flex models would be made at its factories in Sao Paulo state, though it did not specify which they would be.

The U.S. manufacturer makes other kinds of hybrid vehicles, but has said it is committed to shifting toward fully electric cars over the longer term.

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

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

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

GM is the third-largest automaker in Brazil by sales, according to data in the year through August from the Fenabrave dealers’ association.

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

GM also has plans to expand the portfolio of electric vehicles it sells in Brazil, South America head Santiago Chamorro said on Wednesday in the statement, as the automaker currently offers just one 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, it said.