General Motors (GM) is making a significant move in the Brazilian market by announcing plans to manufacture hybrid-flex vehicles. These vehicles will be able to run on 100% ethanol or gasoline, providing flexibility for consumers in a region where ethanol is widely used as a fuel source.
This decision reflects GM’s commitment to the Brazilian market, which is a key area for ethanol-powered cars. The company is investing a substantial 7 billion reais ($1.42 billion) in its Brazilian operations, with 5.5 billion reais directed toward its facilities in São Paulo state.
The first hybrid-flex model is expected to be available in 2025, marking a significant step in GM’s plans to expand its hybrid vehicle offerings. While the company currently manufactures various hybrid vehicles, it has stated its commitment to transitioning to fully electric cars in the long term.
This move comes as other automakers, including Stellantis and Honda, have also unveiled plans to introduce hybrid-flex vehicles in Brazil. The popularity of ethanol-powered vehicles in the region has created a favorable environment for these types of hybrid models.
General Motors is currently the third-largest automaker in Brazil, highlighting the strategic importance of this market. The production and sale of hybrid-flex vehicles are expected to contribute significantly to GM’s continued success in the region.
GM shares are trading marginally lower on Thursday following the announcement. However, the company’s stock has shown strong performance in the past year, gaining over 45%. Investors can access GM shares through various exchange-traded funds (ETFs) such as the First Trust Nasdaq Transportation ETF (FTXR) and the Invesco S&P 500 Pure Value ETF (RPV).
