Brazil to Demand More Fuel Efficient Cars -Sources
by Jeferson Ribeiro (Reuters) *Brazil to announce rules in coming weeks -gov’t sources
* Carmakers need more fuel efficiency to keep tax discount
* New standards should boost investment in engine plants
Brazil will demand that carmakers improve fuel efficiency by 11 percent next year or lose a substantial discount on their tax bill, according to two government sources, in a move expected to bolster a wave of investments in local engine plants. The government has been putting finishing touches on fuel efficiency regulations under a new law that gives a hefty tax advantage to cars made with a minimum amount of local and regional content in the world’s No. 4 auto market.
…Government policy has also stimulated the use of ‘flex-fuel’ engines in Brazilian vehicles, which can burn gasoline, sugarcane-based ethanol or both mixed, but with slightly less efficiency than an engine tuned for either fuel alone. READ MORE and MORE (Advanced Biofuels USA)
