Fiat Chrysler Automobiles is introducing new models to Brazil. It is currently planning to expand the manufacturing of the 2 local factories along with 4 billion Brazilian Real. The Plan is to recapture the losing market share across Latin America’s biggest economy.
FCA is growing the investment plans for Latin America by almost 2 billion Brazilian Real. By the year 2024, it is likely to extend the time frame of outlays. The expenses will move towards a growing the annual capacity of 350,000 units in the Pernambuco plant of Jeep. The current capacity is for 250,000 units and the new unit is likely to help increase the efficiency of turbo engines.
Fiat Chrysler campaigns to launch 15 new, special series models for Fiat. Also, 10 new models are in line for its Jeep and Ram brands by 2024.
The region of Latin America is critical to Manley’s plans of growth across Fiat Chrysler’s business globally. This is the region where the revenue was more during the first quarter. This helped in turning them to turn 105 million euros in earnings of interest and taxes.
The profit margin of automakers across Latin America for the period was 5.4 %. It’s targeting double-digit effectiveness in the region over the five years through 2022.
Fiat launched the first unit in Brazil in the year 1976 and later Fiat topped in sales for 12 years until 2015. The merger with Chrysler caused the pouring of resources in a jeep to make the brand global. This was including the local production of Compass and Renegade models. It is the first company in Brazil to build manufacturing facilities that is not a part of industrial centers.
While the demand for Jeep’s SUVs has grown, the market share has grown to 4.8% in the last 4 years.
The investment by Fiat Chrysler in the region of Latin American is in line with the 10 billion Brazilian Real by General Motors. Also, Volkswagen is investing 10 billion Brazilian Real during the upcoming years.