After years of slow activity in Argentina, Fiat has announced it will invest about $US150 million in its components plant in Córdoba city that mainly supplies vehicle production in Brazil.

The money will be used to boost engine volume and to restart local transmission production ended in 1997. The automaker also plans to use more locally-made parts in its engines and transmissions.

Despite of the boost to its components activities, Fiat does not plan to restart vehicle production in Argentina. The company closed its car plant here in 2001 to concentrate Latin American production at its Betim factory in Brazil.

Rogério Louro