Source AP ©

Fiat SpA to invest much money in Brazil and Argentina

Italian automaker Fiat SpA is going to invest 6.4 billion reals (US$3.56 billion; 2.4 billion EUR) in Brazil and Argentina between 2008 and 2010.

Sergio Marchionne detailed Fiat's investment plans during meetings with President Luiz Inacio Lula da Silva and Aecio Neves, the governor of Minas Gerais state where most of Fiat's Brazilian operations are based, a company statement said.

The investments will be focused mostly on increasing Fiat's current Brazilian production of 720,000 vehicles to about 1 million,the statement said.

Of the total, 5 billion reals (US$2.78 billion; 1.88 billion EUR) will be made in Minas Gerais. Another 1 billion reals (US$555 million: 375 million EUR) has been earmarked for Fiat's farm equipment plant in the state of Sao Paulo.

A total of 400 million reals (US$222 million; 150 million EUR) will be invested in Fiat's auto plant in Cordoba, Argentina, where the company wants to produce 50,000 vehicles as of 2008, the statement said.