All-ethanol cars are on the way from Brazil but will Americans really want them?

By the end of 2007, the United States’ freeways may be a little greener, thanks to a car that can run on 100 percent pure ethanol. Distributed by Santa Rosa, California-based ZAP, the Brazilian-made Obvio mini car is expected to retail for about $14,000. Similar in size to the European Smart car, which is just over 8 feet long, the Obvio will sport a 175-horsepower engine and will sip about 40 miles per gallon, depending on driving conditions.

Whether SUV-loving Americans will embrace the micro-car concept remains to be seen. But Brazil, where ethanol-fueled mini cars are a mainstay, is eager to push the trend. ZAP has garnered funding from the Brazilian government, and owns a 5-million-square-foot manufacturing facility in Rio de Janeiro. Now that ZAP has its U.S. game plan, next comes a more lofty goal: changing American driving habits once and for all.

Contact the writer:DMurphy@RedHerring.com

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