Auto companies are increasingly testing new alternative fuel vehicles in biofuel-rich Brazil before launching them around the globe.
Mitsubishi Motors Corporation (MMC) is developing a flexible fuel vehicle that will be available in Brazil within a year and will bring it to the U.S. in 2009. Mitsubishi has largely ignored alternative vehicles, but now is also working on an electric vehicle as well as new diesel vehicles.
Lotus Engineering is developing "trybrid" vehicles in development with Brazilian startup Obvio that can run on ethanol, gasoline, or natural gas. Obvio also wants a part of the U.S. market and is working with ZAP on bringing its vehicles here.
Brazil's climate and cheap labor make ethanol-powered cars feasible, and is the leader in cars on the road that regularly run on E85 and E100. The Brazilian auto market, which is heavily influenced by the government, proves that biofuel powered vehicles are reliable and that an infrastructure can be developed.
We currently don't produce enough ethanol to fuel the millions of flex fuel cars and trucks from Ford and others, but that could change if Dupont makes good on its pledge to improve the crop yields of ethanol feedstock plants. According to the Wall Street Journal, Dupont wants a share of the biofuels market and is realigning its business units to become a serious competitor.