Compact cars from brazil that can run on 100% ethanol, e100, may soon be arriving in the U.S.

Automotoveiculos S.A says it is "close to securing medium and long-term project financing" to build 50,000 Obvio compacts every year. Zap, the California company that distributes electric and compact gas automobiles, purchased the autos and reportedly has arranged for a $700 million to finance the idea. Zap says it will have Obvios available by the end of 2007.

People may be a slightly skeptical because normal companies wait until a deal is finished before sending out press releases. Also, in 2005, Anuvu received an $11 million contract from Zap for fuel cells for hydrogen cars, but that order never materialized, and Anuvu is no longer around.