General Motors to Produce First-Ever Hybrid-Flex Vehicles in Brazil as Part of $1.42 Billion Investment

166

General Motors has announced plans to begin production of its first-ever hybrid-flex vehicles in Brazil, marking a significant move in the South American country’s growing market for flexible fuel and hybrid technology. These vehicles will be capable of running on 100% ethanol or gasoline, in addition to operating on their electric battery systems. This development comes as the automotive industry in Brazil continues to expand its commitment to eco-friendly and alternative fuel vehicles, largely driven by the country’s robust ethanol industry, which produces biofuel from sugarcane and corn.

This announcement places GM in competition with other major automakers such as Stellantis and Honda, both of which have also revealed their intentions to introduce hybrid-flex vehicles in Brazil. These manufacturers are capitalizing on Brazil’s long-standing ethanol infrastructure, which supports a large share of cars that already run entirely on biofuel.

According to GM’s statement, two hybrid-flex vehicle models will be produced at its factories located in São Paulo state. While specific details regarding the models have not yet been disclosed, a union at GM’s plant in São José dos Campos indicated that the first model is expected to launch by 2025. This new line of hybrid-flex vehicles forms part of GM’s broader investment strategy for Brazil, which includes a 7 billion real ($1.42 billion) investment plan that was outlined earlier in the year. Of this amount, 5.5 billion reais will be allocated to GM’s São Paulo operations, where it operates two major vehicle production plants.

Despite GM’s efforts to transition toward fully electric vehicles (EVs) in the future, the company views hybrid-flex technology as a key part of its short- and mid-term strategy for Brazil. This reflects a broader trend among global automakers, balancing the push toward electrification with the unique fuel infrastructure and consumer demands of different markets. GM has also confirmed that it is exploring the possibility of developing plug-in hybrid-flex models that could run on gasoline, ethanol, or electricity, further diversifying its portfolio in Brazil.

The production of these vehicles in Brazil is expected to align with the country’s decarbonization goals. Brazilian Vice President Geraldo Alckmin previously highlighted the role of hybrid-flex vehicles in helping Brazil reduce its carbon emissions, calling them an important asset for the nation’s environmental strategy.

Currently, GM is the third-largest automaker by sales in Brazil, according to data compiled by the Fenabrave dealers’ association for the year-to-date. In addition to its hybrid-flex plans, the company is looking to expand its electric vehicle offerings in the Brazilian market. At present, GM sells only one EV in Brazil, which is imported from Mexico. However, the automaker’s South America head, Santiago Chamorro, has expressed intentions to broaden the company’s electric vehicle lineup in the region in the near future.

By introducing hybrid-flex vehicles to the Brazilian market, GM is taking a notable step in aligning its business with both local consumer preferences and the country’s wider environmental goals. These efforts reflect GM’s commitment to adopting a multi-faceted approach to sustainability, blending flexible fuel technologies with its longer-term vision of an all-electric future.