Fiat said Tuesday it would invest 1.3 billion euros (aprox. 1.7 billion dollars) to build a new plant in the state of Pernambuco in northeast Brazil. The president of Fiat Latin America, Cledorvino Belini, signed a contract Tuesday calling for work to begin next year on the plant in the city of Pernambuco.
The facility will employ up to 3,500 people to turn out 200,000 vehicles per year, according to the state government, which said Fiat’s “strategic investment” will also spur industrialization in Pernambuco.
Besides the plant, Fiat plans a R&D center at the same location and may also establish a training facility.
“Brazil, where we expect to sell more than 1 million cars per year by 2014, is strategic to our expansion,” CEO Sergio Marchionne said in a statement today . The plant to be built in the state of Pernambuco represents a very important step for Fiat in strengthening its international presence.
Fiat started selling its new Uno compact in Brazil during the second quarter. It delivered 63,400 of the cars through the end of September, the automaker said in October.