Renault plans to spend 500m pesos (US$128m) between 2009 and 2011 to modernise its Argentine plant and launch production of a new vehicle, the company said.
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The automaker did not provide details of the new model or when production would begin, Reuters reported.
About 335m pesos would be spent readying the plant for build the new vehicle while 165m pesos was earmarked for upgrades to the factory in the central province of Cordoba.
Argentine auto production slumped 35.5% in the first five months of 2009 as a slowing economy reduced local car demand, the report said.
Renault was reported to have said the new vehicle would be for Latin American markets.
The automaker currently assembles about 60,000 vehicles a year at the Santa Isabel plant, including the Clio, Symbol [Clio sedan] and Kangoo [light van] models.
Some are exported to neighbouring countries including Brazil, where Renault also has an assembly plant.
