General Motors Holden is to build the popular Cruze medium sized sedan in Australia next year and expects to offer an LPG version.

Overseas, GM is launching an LPG version of the Cruze, starting in Italy before Christmas.

This is part of GM’s strategy in Europe to offer Autogas versions for its entire product line-up. The company says it has been very successful with LPG in Italy - two thirds of the cars they sold there in 2008 were LPG-capable.

 European vehicle tax is related to CO2 output and automakers are seeking a variety of solutions to pollution and high fuel costs - and increasingly turning to LPG.

Later this year the new Fiat Punto will come with an LPG option and Volkswagen’s new LPG Golf MK-VI has hit European showrooms.

There are more than 10 million LPG Autogas powered vehicles on the road in Europe - including 2.6 million in Poland - and more than 20,000 LPG fuel stations. In Germany alone there are more than 4,700 filling stations. Australia has 3,200.

LPG vehicles using the latest technology deliver a CO2 reduction of approximately 10 per cent compared to petrol. In the medium term, it is extremely difficult for any other vehicle fuel alternative to match these emissions savings on existing vehicles.

In 2008, more than 125,000 vehicles were fitted with LPG in Australia,   resulting in an estimated 104,000 fewer tonnes of CO2 being released into the atmosphere. The total fleet is about 700,000 vehicles and Autogas consumption is the third highest in the world per capita.