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Pure ethanol vehicles

Volkswagen do Brasil produced and sold pure ethanol-powered (E100 only) vehicles in Brazil, and production was discontinued only after they were supplanted by more modern Flex Fuel technology. As a response to the 1973 oil crisis, the Brazilian government began promoting bioethanol as a fuel, and the National Alcohol Program - Pró-Álcool - (Portuguese: Programa Nacional do Álcool) was launched in 1975. Compelled by the 1979 energy crisis, and after development and testing with government fleets by the CTA at São José dos Campos, and further testing of several prototypes developed by the four local carmakers, including Volkswagen do Brasil, pure ethanol vehicles were launched in the Brazilian market. Petrol engines were modified to support hydrous ethanol characteristics and changes included compression ratio, amount of fuel injected, replacement of materials that would get corroded by contact with ethanol, use of colder spark plugs suitable for dissipating heat due to higher flame temperatures, and an auxiliary cold-start system that injects petrol from a small tank in the engine compartment to help starting when cold. Within six years, around 75% of all Brazilian passenger cars were manufactured with ethanol engines.

Production and sales of pure ethanol vehicles tumbled beginning in 1987 owing to several factors, including a sharp decline in petrol prices as a result of the 1980s oil glut, and high sugar prices in the world market, shifting sugarcane ethanol production from fuel to sugar. By mid-1989, a shortage of ethanol fuel supply in the local market left thousands of vehicles in line at petrol stations or out of fuel in their garages, forcing consumers to abandon ethanol vehicles.