BRAZIL [updated 29.1.13]: More engine plants in the pipeline
Workers install the engine in a Brazilian-made Fiat
A new investment boom to make engines in Brazil is on the way. These ideas have been around since 2011 and took firmer shape when the government imposed the new, five-year (2013-2017) Inovar-Auto automotive regime which makes it necessary for automakers building cars here to purchase more locally-made components.
Fiat has just announced a BRL500m/US$250m expenditure for their new manufacturing plant in the north east, the country’s less developed region. There will be 550 new jobs in Goiana, Pernambuco state, as of 2015 and the plant will make 150,000 units a year.
During early planning, the Italian company had given up on the idea of engine production there because it had refurbished an engine plant in a southern state (Paraná) it had acquired in 2008 from Chrysler.
Toyota announced late in October a BRL1bn ($500m) spend to produce 200,000 engines yearly for the locally made Etios and Corolla in Porto Feliz, São Paulo state, by 2015.
Ford is currently building a 210,000 engines a year plant in Camaçari, Bahia state, also in the northeast, at a cost of BRL400m ($200m). The three-cylinder units will power the upcoming new Ka, Fiesta and EcoSport.
Another Japanese company going into engine making is Mitsubishi though local importer and manufacturer Grupo Souza Ramos is yet to reveal investment and volumes.
General Motors will officially inaugurate its new engine plant in Joinville (Santa Catarina) on 26 February though it has been producing there since the end of last year. This project was severely delayed because it began almost three years ago at about the time of the parent company's Chapter 11 bankruptcy in the US. This was the only affected GM investment in Brazil.
In total, eight automakers are either building new engine facilities or significantly enlarging existing factories.
Hyundai Motor Brasil, a direct investment by the South Korean parent to manufacture the HB20 compact in Piracicaba (São Paulo) [there is a separate locally-owned import/assembly operation for other models], is expected to announce an engine plant by the end of the year.
There have also been rumours Nissan will make engines at its new car factory in Resende (Rio de Janeiro) currently under construction.
Quarterly results season is with is again with some passable numbers from the biggies already in and more to come. As usual, we have grouped the coverage together in one handy spot....
The Toyota group sold 4.91m units in the first half of 2013, making it the world's top car seller in the period for the second straight year....
Nissan Motor plans to churn out about 40% more luxury vehicles at its factory in Tochigi Prefecture this fiscal year in anticipation of increased exports to North America....
Toyota said its vehicle production subsidiary in Indonesia, Toyota Motor Manufacturing Indonesia (TMMIN), is to start producing engines for vehicles other than the IMV series at a new engine plant due...
Hardline Fiat union, FIOM, says the Constitutional Court of Italy's ruling appearing to overturn the requirement for a labour body to sign a collective labour deal in order to provide organised repres...
BMW reportedly is to buy a stake in British company Chargemaster which produces and installs half of the UK's charging points for electric cars....
- CEO says Citroen wants to be quirky again
- ANALYSIS: VW's self-defeating defeat devices
- Volvo's engine and platform independence progress
- Advanced tech previews from OEMs - PLDB
- Indian summer for SsangYong - ANALYSIS
- Jaguar Land Rover expands engine plant capacity
- VW Group reins in capital spending
- Takata manipulated test results back to 2000
- Prosecutors eye VW workers for emissions tax evade
- Volkswagen making progress on diesel emissions fix
- Global light vehicle instrumentation and cockpits market- forecasts to 2030
- Global light vehicle OE shock absorbers market- forecasts to 2030
- Global light vehicle electronic braking market- forecasts to 2030
- Global light vehicle OE mirrors market- forecasts to 2030
- Global light vehicle roof systems market- forecasts to 2030