Fiat to launch ethanol truck engine in Brazil

[Fledermaus]

By Roberto Samora

RIBEIRAO PRETO, Brazil, April 29 (Reuters) - Fiat Powertrain Technologies (FIA.MI: Quote, Profile, Research) should launch an ethanol-powered engine in Brazil by 2010 for use in trucks and agricultural machinery, the company's regional manager said on Tuesday.

Aimed at the cane industry in the world's No. 1 grower, around half of whose production is used to make ethanol, the motor will cut farming and transport costs as producers can run it on cost-price fuel using the ethanol they make.

"The factory will use ethanol because it won't pay tax on it and performance with ethanol and diesel will be the same," said Mendes.

The engine will be trialed during the next cane harvest in the factory vehicles and machinery of FPT's partners. The trucks would have chassis from Iveco, a Fiat Group company, and Bosch injection systems.

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