Holden to export 'Commodore' to Brazil

Holden's Commodore VE Series II will be re-badged as a Chevrolet Omega in Brazil. Photo / Supplied

ADELAIDE - Car-maker Holden will export its new model Commodore to Brazil.

Chairman and managing director Mike Devereux said the VE Series II car would be sold as the Chevrolet Omega.

Holden will produce 600 cars as an initial special edition model, but hoped to grow those numbers.

Mr Devereux said the deal came as Holden and the Australian car industry emerged from a tough time prompted by the global economic downturn.

"It's been a pretty turbulent time, make no mistake about it, both for Holden but also for the entire auto industry," he said on Tuesday.

"I think we're emerging from that both stronger and wiser than ever."

The export cars will sell in the luxury and performance segment of the market in Brazil and are expected to be available from December.

The Chevrolet Omega will also be the only luxury vehicle on sale in Brazil to run on bio-ethanol, a fuel produced by blending high levels of plant-based ethanol with conventional petrol.

News on the export deal came as Holden unveiled the new VE Commodore range, the first Australian-made vehicles to run on E85 bio-ethanol as well as conventional petrol.

E85 is a cleaner burning fuel capable of cutting carbon dioxide emissions by up to 40 per cent. It is produced from the by-products created during the processing of wheat, sugar and sorghum.

Holden is also investigating the viability of establishing Australia's first ethanol plant that would produce the fuel from household and other waste.

Mr Devereux said the introduction of the E85 flex-fuel technology was part of the company's commitment to leading the push towards alternative fuels.

"We have placed an enormous emphasis on developing technology that can be used in today's vehicles to make driving better for the environment," he said.

Fuel retailer Caltex will start selling the E-Flex high-ethanol blended fuel at 31 outlets in Sydney, Melbourne, Adelaide, Brisbane and Canberra from October.

That number will rise to 100 in 2011, including some regional sites.

Holden's energy and environment director Richard Marshall said the company believed bio-ethanol had a big future in Australia.

"It is a cleaner burning, renewable fuel and long term, we think it has the ability to displace up to 30 per cent of Australia's petrol use," he said.

- AAP