Fiat will spend $US1.12bn in Brazil between 2006 and 2008. This includes about $200m included in the investment set aside for 2005/2007.

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Fiat do Brasil said the money would be used to launch new models and technologies. This year it expects to spend $410m in this, the largest market outside Italy.


Fiat is developing a Brazilian version of the new Grande Punto hatchback plus a mid size sedan currently called Project D200. This will replace the Marea, still in production here. The new cars will be launched in 2007.


The investment announcement came as Fiat said it had made a net profit of $226m in Brazil after two years of losses –$170 million last year.


Revenue in 2005 rose 25% year on year to $5.79bn.


Rogério Louro

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