The expansion of Fiat Automóveis’ factory in the city of in Betim will allow the complex to reach a production level of 800,000 vehicles a year, consolidating its position as one of the largest vehicle factories in the world The Betim factory has a totally integrated production chain which guarantees its high level of flexibility, allowing it to produce 13 different models (including the Fiat Mille, above) in more than a hundred different versions, for the Brazilian market and for export.

Fiat Group and the Government of the state of Minas Gerais in Brazil have officially signed and outlined an agreement for new investments of R$5 billion during the period up to 2010. The 'Protocol of Intentions', which was signed last Wednesday (19th December) by the Governor of Minas Gerais, Mr. Aécio Neves, and the President of Fiat Brazil, Mr. Cledorvino Belini, is considered an important new step in the industrialisation of the Minas Gerais state.

The R$5 billion will be invested in a brand new plant and for the expansion of the eight current facilities belonging to the Fiat Group in the region creating 5,500 new workforce positions. The investments will be applied across six companies within the Fiat Group: Fiat Automóveis, Iveco, FPT Powertrain Technologies, CNH and Magneti Marelli, all of which will see expansion of their current operations, while there will be a new plant for Teksid.

The expansion of Fiat Automóveis’ factory in the city of in Betim will allow the complex to reach a production level of 800,000 vehicles a year, consolidating its position as one of the largest vehicle production facilities in the world. The Betim factory has a totally integrated production chain which guarantees its high level of flexibility, allowing it to produce 13 different models in more than a hundred different versions for the Brazilian market and for export. In its 31 years of uninterrupted production this year will see the highest level of cars made, with more than 700,000 vehicles set to roll of its assembly lines.

The new production unit for Teksid will be a plant building automotive components smelted in aluminium, while in relation to Magneti Marelli the investments will increase its activities in the areas of automotive systems, the production of parts, electronic components, and also suspensions. The location of the facilities in question haven't yet been revealed.

Iveco will promote the expansion of its factory producing trucks, parts and components in the city of Sete Lagoas. The main objective is to increase the production capacity from 30,000 to 50,000 commercial vehicles a year by 2010. The investments in the division will also result in the attraction of supplier’s industrial facilities of in the area.

FPT Powertrain Technologies will have investments made in two of its units, the first in Sete Lagoas that specialises in motors and transmission for trucks, tractors and agricultural construction vehicles, and the second in Betim, which produces powertrain systems for automobiles and light commercial vehicles. In Betim the production capacity will be increased from 530,000 up to 730,000 engines and from 490,000 up to 600,000 transmissions a year, while in Sete Lagoas, the new level set to be achieved is 70,000 diesel engines, almost three times the current level of 25,000. New Holland, the division that is responsible for the production of agricultural equipment, and Case, for construction vehicles, will increase its current capacity up to 8,000 units, a growth of 60 percent.

Several projects within the ambitious new agreement were greeted by the governor of the state, Mr. Aécio Neves, as being of historical fact and consolidating Minas Gerais’ industrial capacity, serving to expand the region's automotive reputation and to create positive effects over all the local economy. He also highlighted the consequent elevation of the income and quality of life.

"With this investment, the largest made since the arrival of Fiat in the state, the companies of the Group reaffirm their commitment to Minas Gerais and Brazil. It is also a demonstration of the Group shareholder’s trust in the Brazilian market and in the work capacity of the local population," affirmed Mr. Cledorvino Belini, CEO of Fiat Group in Brazil. He added that the investment will strength the strategy of the Group’s companies in the consolidation and enlargement of their leadership position in the Brazilian market, contributing to the objectives of growth of the whole Group in global terms.

by Claudio Perlini