Brief History of the Flex Fuel Car
Brasil has a long tradition of building cars that can run on ethanol. In the past, the country was not able to produce the oil that was demanded by its market and therefore gasoline prices were very high (as of 2006 Brasil produces all the oil it demands). During the oil crisis of the 70’s this was taken to the extreme and therefore the Government started a program to build ethanol based cars as a means to reduce it dependence on imported oil.
Ethanol based cars were popular but at the end of the 80’s the end of the Governmental program to provide incentives to ethanol production plus a rise on the prices of sugar caused a rise on ethanol prices (both are produced out of sugar cane in Brasil). Many alcohol based cars became way too expensive to be used. Many people sold their ethanol based cars and switched to gasoline based cars. However, the infrastructure was ready with nationwide distribution of ethanol at gas pumps.
During the 90’s two companies were instrumental to the development of the flex technology: the German autoparts maker Bosch and the Italian autoparts maker Magneti Marelli. The subsidiaries of both companies in Brazil developed the technologies that made the Flex Cars possible. Most of the Brazilian Flex cars on the road today actually use the Magneti Marelli technology. The technology is very affordable, since it basically uses software to constantly measure the mix of fuels coming into the engine and makes any adjustments in the engine behavior, if needed. The technology adds only a few dollars on top of regular engines, but even that cost was reduced to zero by the Brasilian government via a tax exemption at the end of 2002. The first commercial cars came out to the market in 2003.
Flex cars in Brasil are now more than three quarters of the new cars sold in Brazil this year, which is a very remarkable ramp in just three years. Flex cars are coming to other countries as well. GM, for example, has committed to produce and sell about 400,000 vehicles with flex Engines in the United States this year and the number should ramp quickly on the years to come. Oil prices and concerns about GHG emissions from gasoline are two powerful reasons for the renewed interest on ethanol. If the US is serious about cutting its oil addiction and doing its bit about the environment it should go beyond speech and put in place the incentives to develop its own ethanol industry. The time is right for such a move.
Links:
- Washington Post story on GMs Brasilian ethanol cars: http://www.washingtonpost.com/wp-dyn/content/article/2006/05/19/AR2006051900550.html
- Exame magazine has a nice article on Ethanol and Flex Cars on its June 15th, 2006 number, but the content is closed and it’s in portuguese. Very recommended read.
