General Motors to Begin Production of Hybrid-Flex Vehicles in Brazil

General Motors announced plans to produce hybrid-flex vehicles in Brazil, capable of running on 100% ethanol or gasoline, leveraging the country's strong ethanol industry. The move aligns with GM's $1.42 billion investment plan in Brazil. Rival automakers Stellantis and Honda also target the South American hybrid-flex vehicle market.

General Motors announced on Wednesday its plan to manufacture hybrid-flex vehicles in Brazil, marking a pioneering move as these models can operate on 100% ethanol or gasoline, accompanied by battery power. This strategic decision leverages Brazil's robust ethanol industry.

GM will produce two hybrid-flex models at its factories in Sao Paulo. While specific models were not disclosed, a local union hinted the first would debut in 2025. This initiative forms part of GM's ambitious 7 billion real ($1.42 billion) investment plan in the country, previously announced in January.

According to GM, 5.5 billion reais will be allocated to its operations in Sao Paulo, where it operates two car factories. This move comes as GM stands as Brazil's third-largest automaker by sales, per Fenabrave dealers' association data. The firm also plans to expand its electric vehicle offerings in Brazil and is exploring the possibility of a plug-in hybrid-flex model.

(With inputs from agencies.)