Stellantis will invest up to 2.5 billion reais (US$508 million) in its plant in the state of Rio de Janeiro, its general director for South America, Antonio Filosa, announced on Friday.
The funds are part of an investment cycle that ends in 2025.
“We want to make investments of 2,500 million reais until 2025″ Filosa said, adding that the C3 AirCross model, a seven-seater SUV, will be manufactured at the plant.
The vehicle is the second announced within the current investment cycle, which should also include one more model, according to the executive. The first was the compact C3, launched in 2021.
The executive added that a third vehicle, which is still “a secret”, will also be manufactured in the plant, considered strategic for the development of the group in South America.
The Stellantis Automotive Pole has been operating in Porto Real since 2001. Between 2011 and 2022, it received 7.6 billion reais in investments.
The group also has two other factories in the country.
Stellantis owns brands such as Fiat, Peugeot and Jeep.
They extend the strike at General Motors and Stellantis
The U.S. Auto Workers Union on Friday expanded a strike against two of Detroit’s “Big Three” and invited President Joe Biden to support the workers on the picket line.
The president of the union United Auto Workers (UAW), Shawn Fainannounced a strike of the 38 American distribution and parts centers of General Motors and Stellantis, where negotiations are stalled.
Fain did not extend the strike at Ford, where there are still important gaps, but which has offered important concessions since the strike began a week ago. ”As we’ve said for weeks, we’re not going to wait forever to get fair contracts in the Big Three,” Fain said at a briefing.
”We invite and encourage anyone who supports our cause to join us on the picket line, from friends and family to the President of the United States.”added Fain. ”The way they can help is to build our movement and show businesses that the public supports us”.
The UAW is seeking pay increases of 40%, which would match average CEO raises over the past four years.
The strike, now in progress for a week, has so far had a limited effect on companies’ profits, while introducing new pressures on the “Big Three” auto parts suppliers. But the extension of the strike will pose new challenges for Stellantis and GM.
Analysts consider that the worst economic scenario would be a prolonged strike that would affect the consumption of workers, who take home US$500 a week in wages instead of their normal salaries.
With information from Reuters and AFP
Source: Gestion
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