Fiat to invest US$6.67 billion in Brazil through 2016

Italian car and equipment maker Fiat SpA plans to invest 15 billion Brazilian reais (US$6.67 billion) in Brazil, its largest market outside Italy, a company spokesman said.
The group’s global chief executive, Sergio Marchionne, told Brazilian President Dilma Rousseff about the plans in a late afternoon meeting in Brasilia, according to Fiat spokesman, Roberto Baraldi. He told reporters the investment includes expanding capacity to build cars, trucks, heavy equipment and engines. A new factory for Fiat’s Iveco brand will be built to produce military trucks, Baraldi said.
Fiat already produces cars, trucks and its Case New Holland line of agricultural and construction equipment in Brazil.
Fiat is the largest car manufacturer in terms of sales in Brazil, according to automaker association Anfavea. The Italian carmaker sold 596,860 cars last year, while its German rival Volkswagen AG sold 591,038. General Motors Co. sold 529,270 passenger cars, while fourth-place Ford Motor Co. sold 244,065 units.
The spokesman said the new investment plan does not include any investments for its Chrysler brand, which does not have enough scale in Brazil to warrant local production, he said.
New fuel-efficiency requirements in Brazil are also driving Fiat to invest in engine manufacturing in the country, the spokesman said.
(May 7, 2013)