The Azerbaijan State News Agency

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Fiat to open new factory in Brazil, boost output

16.12.2010 [18:48]
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Baku, December 16 (AZERTAC). Italian carmaker Fiat will open a car factory in Brazil`s state of Pernambuco capable of producing 200,000 vehicles a year, the company`s press office said late on Monday.

The new factory should be ready in three years and will produce a new model still to be developed by the carmaker, the press office said. A formal announcement is expected to take place on Dec. 14.

Fiat will invest 3 billion to 5 billion reais ($1.77 billion to $2.94 billion) in the new factory, a source familiar with the matter told Reuters.

Fiat in October announced plans to invest 10 billion reais ($5.89 billion) by 2015 in Brazil, including for the production of cars, auto parts, and agricultural equipment.

Fiat also plans to increase production in its factory in the state of Minas Gerais by 150,000 cars per year, the press office said. That factory produces 800,000 cars a year.