SAO PAULO - Magneti Marelli will invest $160 million in Brazil by 2001. About $40 million will be for a new plant that will produce electronic fuel injection systems.
The Fiat SpA-owned supplier currently makes exhaust systems, instrument panels, rear-view mirrors and electric motors at five plants in Brazil.
Part of the investment will enable Magneti Marelli to add production of headlamps and oil pumps.
The headlamps will be produced at its newly opened Contagem plant in Minas Gerais state, starting in September. Oil pump production will start next year at an undisclosed location.
Magneti Marelli will also spend $1 million on a new exhaust system line for the Mercedes-Benz A-class, employing 80 people. Production will start in November.
The remainder of the investment will be used to update existing production lines.
Brazil accounted for 14 percent of Magneti Marelli's global sales last year, or $516 million. The company aims to raise this to $850 million in 2001.