Renault do Brasil this week started production of the Mégane Sedan II in its plant in São José dos Pinhais city, Paraná state. Sales will begin in the first half of next year.

To produce the Mégane Sedan II in Brazil, the automaker has invested about €50 million for capacity of about 20,000 units of the new derivative per year.

Initially, the Brazilian-made sedan have a 1.6-litre 16-valve flexfuel engine that runs on petrol, alcohol or a blend of the two. It's the same engine used in locally-made Clio and Scénic models.

In the second half of 2006 the Mégane Sedan II will receive another flexfuel engine, a 2.0-litre 16-valve.

The Brazilian-made sedan will be sold both locally and in other Latin America countries.

Rogério Louro