Aug. 12 (Bloomberg) -- General Motors Corp., the world's largest automaker by sales, plans to start production in Brazil of a car that can run on three types of fuel, O Estado de S. Paulo reported.

The car, to be produced in the company's plant in Gravatai, in southern Brazil, will run on gasoline, alcohol or natural gas, the paper said citing Jose Carlos Pinheiro Neto, GM's Brazil unit vice-president. The company plans to begin sales of the cars in Brazil in the first half of 2007.

Robert Bosch GmbH, the world's second-largest auto parts maker, developed the technology for an engine that will allow users to switch the type of fuel by pressing a button on the control panel. GM expects to sell 80 percent of the new cars in Brazil, the paper said.

GM's new model will be unveiled tomorrow during a meeting with President Luiz Inacio Lula da Silva in Brasilia. Automakers in Brazil last year began selling cars that run on gasoline or alcohol. These so-called flex power cars accounted for 17 percent of new car sales in Brazil and 27 percent of GM's cars sold in the country, the paper said.

To contact the reporter on this story: Romina Nicaretta in Sao Paulo at at Rnicaretta@bloomberg.net

Last Updated: August 12, 2004 08:31 EDT