Ford reveals new investment in Brazil
Date added: 18th January, 2010 at 09:35
(view all articles from January, 2010)
Categories: Economy
An investment in Brazil will be made by US carmaker Ford, in a move which will see engines for its Fiesta vehicle produced in the Latin American country.
The company said that the motor - which it described as economical and long-lasting – will be a four-cylinder model. It will be fitted to its latest range of Fiesta 1.6 cars, the local Brazil Arab News Agency reported.
Global marketing vice-president for operations in Canada, Mexico and South America at Ford, Jim Farley, said the new engine is the latest in a line of high-technology units which the manufacturer will release over the next three years.
"Each of these engines is going to deliver the power that our new customers want, combined with the fuel economy that they need," Mr Farley remarked.
Ford made a 600 million reais (£207 million) investment in Brazil in order to expand its facility in the city of Taubate so that the new generation of engines could be produced there.
Marcos de Oliveira, president of Ford in Brazil and the Mercosur, remarked that it is a "great acknowledgement" for Brazil to have its engines chosen for cars which will be sold in the US - which he described as "one of the world's most demanding markets".
He went on to stress how critical the Fiesta is to the company, explaining that its importance "is strategic to Ford's business in the US".
As well as being fitted to the Fiesta in North America, the Sigma engine will also feature on the Novo Focus in Brazil.
Furthermore, the group revealed it will spend four billion reais on improving its infrastructure across the country. It said this move will be necessary so that it can keep up with demand for new vehicles as the Brazilian economy continues to expand.
More than half of the investment in Brazil will be focussed on developing facilities in the North East of the nation. Ford will increase output at the Camacari plant, in the state of Bahia, to 300,000 units per year, creating 1,000 new jobs in the process.
In the process, the firm will also modernise its jeep production plant in Ceara state.
Mr de Oliveira went on to point out that the Latin American country is Ford's third-largest subsidiary around the world in terms of sales.
This development comes after reports from macuahub.com that Chinese carmaker Chery International is mulling over making an investment in Brazil in either the state of Sao Paulo, Rio de Janeiro, Minas Gerais, Mato Grosso do Sul or Ceara.
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