Ten Million Flex-Fuel Vehicles in Brazil a Milestone that Deserves Global Dissemination by Automakers

By Brazilian Sugarcane Industry Association, PRNE
Thursday, March 4, 2010

SAO PAULO, March 5, 2010 - The announcement that Brazil's 10 millionth Flex-Fuel vehicle was built
yesterday, made by the country's National Association of Vehicle
Manufacturers (Anfavea), is a milestone for the industry and the country. It
should encourage automakers to invest more in the global dissemination of
what has been accomplished in Brazil, as well as in their countries of
origin. This was the assessment of the Brazilian Sugarcane Industry
Association (UNICA), which sees an abundance of good reasons to spread the
word and embrace a truly "Made in Brazil" success story.

"We congratulate the auto industry in Brazil for its vision and the
boldness shown when it chose to invest heavily in Flex technology, to the
point that many of these industries do not even produce vehicles powered
exclusively by gasoline any more. The next step is to take this technically
proven and highly successful project to the rest of the world, since all
major automakers in Brazil have a global presence," commented the president
of UNICA, Marcos Jank.

Despite its indisputable success in Brazil, Flex-Fuel technology is not
widely offered in other parts of the world, largely because of the lack of
commitment to produce, use and distribute ethanol. Where there is in fact
interest and ethanol production and use, there are barriers, especially
tariffs, preventing the entry of the imported product.

Because of these protectionist barriers, Brazilian sugarcane ethanol, a
more effective, less costly biofuel that's recognized for its ability to
reduce emissions that cause global warming, has struggled to enter global
markets competitively. UNICA sees that situation as ironic: while fossil
fuels move freely around the world, renewables, capable of positively
impacting climate change, are blocked, at a time when the world repeatedly
declares it is concerned about climate change.

"We know this is not a simple or quick process, but the introduction of
Flex-Fuel vehicles around the world is something that has to be considered,
and it can only happen with decisive support from automakers. Without it,
Brazil would not have accomplished such positive results and it will not be
different in other countries. The role of the auto industry is crucial," said

UNICA's Technology and Emissions Consultant, Alfred Szwarc, sees no
reason why automakers should not introduce their Flex-Fuel technology
elsewhere in the world, and disseminate their success in Brazil at major
global automotive industry events. "These vehicles and more information on
them should be taken to automotive events of global importance, such as the
Frankfurt, Detroit and Geneva auto shows. It is unfortunate that emphasis on
Flex-Fuel technology is not even seen at the Brazilian Auto Show, where the
success and market dominance of these vehicles should be a source of pride
for the industry, the country and consumers," he said.

The president of UNICA noted that the organization, which follows and
directly participates in discussions and initiatives involving the production
and use of ethanol in various parts of the world, finds it surprising to note
the lack of information about the existence, success and importance of
Flex-Fuel cars in Brazil. "Automakers should present their incredible
Brazilian success story to the world as a perfectly viable example for others
to adopt. The cost of presenting this option to consumers is not high, and
consumers will then be able to choose, where available, a renewable fuel of
much lower environmental impact compared to any fossil fuel," said Jank.

He added that more Flex-Fuel vehicles introduced in more markets would
help to encourage more production and availability of ethanol, as results in
Brazil have shown for decades.


The Brazilian Sugarcane Industry Association (UNICA) represents the top
producers of sugar and ethanol in the country's South-Central region,
especially the state of Sao Paulo, which accounts for about 50% of the
country's sugarcane harvest and 60% of total ethanol production. UNICA
develops position papers, statistics and specific research in support of
Brazil's sugar, ethanol and bioelectricity sectors. In 2008, Brazil produced
an estimated 565 million metric tons of sugarcane, which yielded 31.3 million
tons of sugar and 25.7 billion liters (6.8 billion gallons) of ethanol,
making it the number-one sugarcane grower and sugar producer in the world,
and the second-largest ethanol producer on the planet, behind the United

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