Volkswagen Goes All Flex Fuel in Brazil
SAO PAULO, Brazil — In a country that encourages ethanol production through heavy official subsidies to sugar producers, Volkswagen will become the first major manufacturer to completely convert its vehicle production mix to flex fuel.The irony is that world sugar prices have surged this year, persuading many Brazilian farmers to produce sugar rather than ethanol, according to a report in Reuters.The irony is that world sugar prices have surged this year, persuading many Brazilian farmers to produce sugar rather than ethanol, according to a report in Reuters.
VW said it planned to complete the conversion by the end of the year, phasing out production of gas-only models. All its vehicles in 2007 will be able to run on ethanol, gasoline or a mixture of the two. VW expects to build about 450,000 flex-fuel vehicles a year in Brazil, where it has long been one of the market leaders.