Fiat’s local press office has confirmed the automaker will build a second car factory in Brazil in the state of Pernambuco.

The new, 200,000-units factory should be ready in three years and will produce a new model still to be developed by the carmaker, the press office told Reuters. A formal announcement is expected on Wednesday 14 December.

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Fiat will invest R$3bn to R$5bn (US$1.77bn to $2.94 billion) in the new factory, a source familiar with the matter told the news agency.

It added Fiat also plans to increase production in its factory in the state of Minas Gerais by 150,000 cars per year from the current 800,000.

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