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Italian Economic Diplomacy, 23th May 2019 – the latest news from the world

 

FIAT CHRYSLER ANNOUNCES INVESTMENT PLAN IN MINAS GERAIS, BRAZIL

The Fiat Chrysler Automobiles (FCA) announced an 8.5 billion reais investment plan, equivalent to 1.8 million euro, to produce turbo engines and new car models. The new vehicles include a compact  Fiat SUV to be assembled in the Betim plant located near Belo Horizonte in the state of Minas Gerais. The investment is part of a 5-year plan (2020-2024) set up by FCA and its suppliers, which envisages also 6 billion reais earmarked for the Goiana plant in the state of Pernambuco. 

The new production will turn the Betim plant into the largest engine manufacturer in Latin America. Some of the engines produced in the plant are intended to be shipped to the European market. If the demand will be as estimated by the automotive group, 9,000 new jobs should be created in five years, as direct jobs and spin-offs on the value chain. 

The investment includes an agreement between FIAT and Gasmig (the public gas company of Minas Gerais), a tax exemption policy on gas-powered vehicles, alongside with several education and training cooperation and research projects between the Italian automotive group and the state of Minas Gerais.

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