Nissan will make a new three-cylinder, one-litre engine in its powertrain plant at its Resende Industrial Complex in Rio de Janeiro State, Brazil.

The new engine required a BRL100m (US$36.9m) spend, president and CEO Carlos Ghosn said during a visit to Nissan Brazil’s headquarters in downtown Rio.

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The new I3 engine will share its assembly line with the 1.6-litre engine which has been produced since Nissan started operations at Resende in April 2014.

At the time, just-auto‘s Brazilian correspondent Fernando Calmon reported: “The high engine production capacity suggests the supply of one-litre engines made by Renault in São José do Pinhais, state of Paraná, may be switched to engines made by Nissan itself. This displacement class is surging back into popularity here (currently 40%). Resende’s ultra modern facilities offer opportunity to develop new engines to replace the current generation of I3 units.”

Around 25 people have been hired to assemble the new engine boosting the powertrain unit’s headcount to about 200.

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“The production of a new three-cylinder engine in Brazil demonstrates that Nissan is determined to boost its presence in the domestic market with modern, innovative products made locally. Therefore, we increased the local content ratio of our products in order to further competitiveness,” said Ghosn.

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The engine produces 76hp and 98Nm of torque on both petrol and ethanol. It will go into the new Versa sedan which will share its assembly line with the March [Micra] and March Active. With an aluminium block, four valves per cylinder and high-end technological features, the new engine is claimed to be one of the most energy efficient in Brazil with high performance and low CO2 emissions.