Sustainability 2011/12

Climate Change and the Environment

South American Policy

In Brazil, our largest South American market, the use of biofuels is a national policy. All gasoline is blended with 20 to 25 percent ethanol, and pure ethanol is extensively used as motor fuel. Most new vehicles are designed to accommodate varying amounts of ethanol. Also a minimum of 5 percent biodiesel must be added to diesel.

Brazilian emission requirements are periodically updated by an emissions-control program. A voluntary fuel economy labeling program is also in place. A star ranking for light vehicles was recently introduced, favoring low-emission, low-carbon-dioxide (CO2), ethanol, flexible-fuel and hybrid vehicles. Diesel use in light vehicles under a one-ton payload is not allowed, except for combined-usage vehicles with special off-road characteristics. Ten Brazilian states have issued Vehicle Pollution Control Plans and are taking actions to implement In-Use Vehicle Inspection and Maintenance Programs.

Other South American countries, such as Argentina and Colombia, are also significantly increasing the use of biofuels. The Chilean government is reviewing a mandatory fuel economy labeling program which will provide information on fuel consumption and CO2 emissions.

In 2012, 100 percent of Ford’s products in South America will be offered as Ethanol Flex Fuel Vehicles. The most recent vehicle line to offer this was the Ford Ranger, which now comes in a 2.5L ethanol flex-fuel version. Some imported vehicle lines including the 2013 Ford Fusion will also come in a flex-fuel version in Brazil. We also provide light- and heavy-duty vehicles that meet biodiesel requirements.