Toyota developing gasoline-alcohol vehicle for Latin America
 Jun 12, 2005
 http://news.yahoo.com/s/afp/20050612/sc_afp/japanlatamautotoyota_050612222210 

 TOKYO (AFP) - Japan's top automaker Toyota Motor has begun developing
 a "flex-fuel" vehicle powered by gasoline and lower-priced alcohol fuel,
 and aimed at the Brazilian and other Latin American markets, a newspaper 
reported. 

 Toyota aims to launch the new vehicle in the second half of next year or later,
 with the demand for alcohol fuel made from sugarcane or other plants rising
 as alternative to gasoline in Latin America, the Nihon Keizai Shimbun said.

 A flex-fuel car runs with both gasoline and alcohol pumped into a single tank,
 allowing the driver to adjust the mixture between the two depending on
 their prices, the economic daily noted.

 In Brazil the prices of ethanol, a type of alcohol fuel,
 are only half those of gasoline and drivers are allowed to
 adjust the ratio between the two fuels, it said.

 Toyota, the pioneer of a hybrid car powered alternately by
 gasoline and electricity, did not develop flex-fuel cars before
 because alcohol fuel is not allowed to exceed
 three percent of the total in Japan, it said.

 But the company now sees strong demand for such vehicles in
 Latin America as well as growing consumer interest in other
 emerging markets such as China and India, the paper said
 without citing sources.

 The Nihon Keizai said all foreign carmakers operating in Brazil,
 except for Toyota and Honda Motor, were already marketing
 flex-fuel cars.

 No immediate comment on the report was available from Toyota.
 --- 

 AFX News Limited 
 Toyota to develop cars powered by gasoline/alcohol,
 eyes Brazil market -report 
 06.12.2005 
 http://www.forbes.com/business/feeds/afx/2005/06/12/afx2088397.html 

 TOKYO (AFX) - Toyota Motor Corp has begun working to develop
 so-called 'flex fuel' vehicles powered by gasoline and alcohol,
 The Nihon Keizai Shimbun reported. 

 Demand for alcohol made from sugarcane is growing as an
 alternative fuel to gasoline, especially in Latin America.
 Toyota hopes to market new flex fuel vehicles in the
 second half of next year at the earliest because Latin America,
 where new car sales are rising sharply, is one of the
 priority markets for the carmaker. 

 A flex fuel car runs safely with both gasoline and alcohol
 pumped into a single tank, allowing the driver to
 adjust the mixture between the two fuels depending on their prices.
 In Brazil, the prices of ethanol, a type of alcohol fuel,
 are only half those of gasoline and drivers in the country
 are allowed to adjust the ratio between the two fuels. As a result,
 flex fuel cars account for some 50 pct of the total in the country
 as of this May, up from 22 pct last year. 

 Until now, Toyota has not developed such cars because
 alcohol fuel is not allowed to exceed 3 pct of the total in Japan.
 But all foreign carmakers operating in Brazil, except for
 Toyota and Honda Motor Co, are already marketing flex fuel cars.
 The company now sees promise in this car category,
 as increased amounts of such vehicles are also selling in
 China and India. 

 Toyota sold 260,000 new cars in Latin America last year,
 of which sales in Brazil reached a record 50,000 units.
 Brazil is the world's largest producer of bioethanol made from
 sugarcane. Although it releases carbon dioxide when burned,
 its emissions are counted as zero under the Kyoto Protocol
 because the fuel is derived from plants. In the US state of
 California, too, use of gasoline with 10 pct ethanol is
 growing, the report said.

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