GM to Sell Brazilian Car That Runs on Gasoline, Alcohol and Natural Gas

SAO PAULO, Brazil August 12, 2004; The AP reported that General Motors Corp. will soon start selling a car in Brazil that runs on gasoline, alcohol or natural gas, the company's Brazilian division said Thursday.

The company will offer the multi-fuel technology in one of the existing models it makes in South America's largest country. Sales are expected to begin next month, but GM declined to offer more details.

GM, Fiat SpA and Volkswagen last year began selling Brazilian "flex-fuel" cars that run on either alcohol or gasoline, but GM's new car will be the first to come with the natural gas option.

Brazilian car users have been installing natural gas conversion kits for years so their cars can run on natural gas in addition to either alcohol or gas. But the feature has never before been offered as an option from the factory by carmakers.

Automakers sold 150,000 flex-fuel cars in Brazil from January through July, representing 18 percent of total new car sales. Most flex-fuel car buyers are currently filling up with alcohol because it costs about half as much as gas.

GM executives on Friday plan to show the multi-fuel car that also runs on natural gas in a presentation to Brazilian President Luiz Inacio Lula da Silva.