Fiat wants to build a second factory in Brazil

Fiat has officially confirmed that it is in talks with Brazilian Pernambuco State Government to open its second car factory in Brazil, according to a source close to officials cited by Reuters.

Italian company looking to build factory in the industrial complex in the port gate, said source said he wanted to remain anonymous, says Automotive News Europe.

Discussions on a second factory come in the context of the Brazilian Fiat plant is now working at almost full capacity to meet the high demand and car competitors such as Toyota and Hyundai also have regard to the construction of factories in Brazil.

A formal announcement on this investment of Fiat is expected on December 14 when President Inacio Lula da Silva came to visit in this region.

Contacted by Reuters, company officials have stated: "Fiat and the government of Pernambuco is in negotiations on a possible investment in this state, but without elaborate.

Fiat plant in Minas Gerais State has a maximum capacity of 800,000 cars per year. The company said recently that sales in Brazil could increase capacity using the plant in Cordoba, Argentina.

Fiat recently announced it is planning investments of $ 5.8 billion in Brazil by 2015, including an automobile factory, car parts and equipment for agriculture. Approximately 70 percent of the total will be invested in machinery, is expected Nov. 20 models in 2011.

Source: http://www.fiat.com/