From the Newsroom
São Paulo – General Motors Brazil presented, on Friday (13), its first "multi-fuel" engine produced in Brazil. The model, an Astra Sedan, with a 2.0-litre, eight-valve engine, may run on petrol, alcohol, a mixture of both, or natural gas. This is an evolution of the "flex fuel" engine, already produced in the country, and that can run on both petrol and alcohol. According to information provided by the company, the car should be put on the market up to the end of the month.
The company prepared an event in great style for the release of the new mode. They took one vehicle to Brazilian capital Brasília and introduced it to president Luiz Inácio Lula da Silva at the Presidential Palace. "I liked the car very much. It is very good. You may buy it," stated the president, according to a GM spokesperson. President Lula entered the car, started the engine, and observed the operation of the fuel management system baptized "Multi-power", produced by Bosch Brazil.
Luiz Fernando Furlan, minister of Development, Industry, and Foreign Trade, who was also at the event, is already considering the possibility of export. "We hope to be able to export this technology, as the transport sector has had an extraordinary performance in foreign trade, growing over 30%. This is not only true for passenger vehicles, but also in the area of heavy vehicles and equipment," stated the minister, according to information supplied by the official Brazilian news agency, Agência Brasil.
In the period between January and July this year, Brazilian vehicle exports, which include cars, buses, trucks, and agricultural machinery, have already generated US$ 4.35 billion. The National Association of Vehicle Manufacturers (Anfavea) forecast is that foreign trade revenues should reach US$ 7.5 billion up to the end of the year. If confirmed, this figure will represent a 36% increase with regard to 2003.
Today (16) the GM directory is going to present the multi-fuel Astra to Geraldo Alckmin, governor of the southeastern state of São Paulo. At the beginning of the year, Alckmin met industry and oil and gas sector representatives to discuss expansion of the use of natural gas in the Brazilian energy matrix. Last year, Brazilian oil giant Petrobras discovered an immense reserve of the fuel in Santos Basin, off the coast of the state.
Democracy
At the occasion, state Environmental secretary José Goldemberg made an appeal for carmakers to start producing "tri-fuel" engines, which could be petrol, alcohol, or gas powered. Science and Technology secretary João Carlos Meirelles added that this would "democratise" the fuel market for consumers, who would be able to choose between three kinds of fuel.
At the meeting, GM Brazil vice-president José Carlos Pinheiro Neto, and other executives present, stated that it would be necessary for the state to provide some sort of tax break for the project to be made possible.
At the same meeting, the vice-president of Bosch Latin America, Besaliel Botelho, who also participated in the event on Friday, added that his company already had the technology for production of the fuel management system, but he also mentioned the need for tax reduction, which had already been accepted in the case of "flex fuel" vehicles.
On Friday, according to Agência Brasil, minister Furlan stated that the Federal government was studying the possibility of providing tax breaks for multi-fuel engines. "This theme is being analysed by minister (Antônio) Palocci (Finance) and I hope that within the second half a definition is reached," he declared.
Company
GM has been operating in Brazil for 79 years. The operation in the country is the second largest operation outside the United States.
Last year, GM Brazil and Argentina joint exports broke a historical record and generated US$ 1.2 billion for the company, a 20% increase in comparison to 2002. Both subsidiaries sold to over 40 countries, including countries in the Middle East and Africa.
