Fiat Chrysler Automobiles is set to invest $4 billion in a plan to regain market share it has lost in Brazil.
The car manufacturer first announced extensive investment plans in Latin America’s largest economylast year, but has now pledged an extra $494 million. It has also extended the time frame of outlays from 2023 through 2024, Auto News reports.
According to FCA CEO Mike Manley, the money will go towards increasing annual capacity at a Jeep production site in Pernambuco to 350,000 vehicles up from the current 250,000. In addition, FCA will build a new plant in Brazil dedicated to more efficient turbo powertrains. The car manufacturer is also planning 15 new, refreshed, or special series models from Fiat by 2024, as well as no less than 10 new models from Jeep and Ram.
“We want to make sure the Fiat brand remains very strong in Brazil’s marketplace. The Fiat brand is a vital part of our business,” Manley said.
Brazil is of the utmost importance to FCA, as it is the only market outside of North America where the company made money in the first quarter of the year, reporting $117 million in adjusted earnings before interest and taxes. FCA is targeting “near-double-digit” profitability in the region over the five years through 2022.
Fiat has had a strong presence in the country for decades and actually led brand sales in the country for 12 years until 2015. The Italian company has a factory which makes engines, transmissions, and eight models with a capacity of 800,000 vehicles and 1.1 million engines and transmissions in the central state of Minas Gerais, while Jeep also has a production site which builds the Renegade and Compass.