Today, the Italians announced plans to erect a new facility in the Brazilian State of Pernambuco, one which will comprise a manufacturing facility and R&D center, as well as provide tools for design and development of new products and platforms and training for employees.
The 4.4 million square meters in Suape’s Industrial District will be transformed into a Fiat facility after an estimated EUR1.3 billion ($1.74 billion) will be spent by Fiat. It will all be done in the hope of selling 1 million vehicles in the country by 2014.
According to the carmaker, once ready, the plant will be capable to produce 200,000 vehicles per year, including models purpose built for the Brazilian market and other South American countries. Some 3,500 people will be employed in the compound which will also house component and systems suppliers.
“The plant to be built in the State of Pernambuco represents a very important step for Fiat in strengthening its international presence,” said Sergio Marchionne, the CEO of the Fiat group.
“Brazil, where we expect to sell more than 1 million cars per year by 2014, is strategic to our expansion. It is also the Group’s objective to contribute further to the economic, technological and industrial development of this country, where we have operated in the automobile sector for nearly 40 years.”