Fiat is in talks with the Government of Brazil State Pernambuco to opening a second motor vehicle manufacturing plant in Brazil.
An anonymous source told Reuters the automaker wants to build the factory in the industrial complex of the port of Suape and a formal announcement about the deal is expected next week Tuesday, 14 december, when President Luiz Inacio Lula da Silva visits the site.
On the record, Fiat told Reuters: "Fiat and the Government of Pernambuco maintain negotiations on possible investments in the State," without elaborating.
The report notes that the negotiations as Brazilian of the Fiat factory functions almost at full capacity to meet growing demand and as other automakers including Toyota and Hyundai are also planning investment in plants in Brazil.
The Fiat factory in the State of Minas Gerais has a capacity of about 800,000 cars per year. Business leaders have recently said that they could sell in Brazil through unused capacity of the enterprise Cordoba, Argentina, plant.
The company recently announced plans to invest R $ 10 billion (US $ 5.8bn) by 2015 in Brazil, a plan which cars, car parts and agricultural machinery.
70% will be invested in cars, with the company expects to unveil 2011 20 new models or upgrade versions of current.
In March, Fiat opened a R $ 1 billion ($ 585 m) facility in Brazil for the production of agricultural machinery.
