Fiat Chrysler Automobiles NV on Wednesday announced a $500 million investment in Argentina for production of a new vehicle for the Latin American market.
The plant is scheduled to launch production in the second half of 2017 and will produce more than 100,000 vehicles a year, according to the automaker.
“This plant will operate using the most advanced technologies available to FCA today,” said FCA CEO Sergio Marchionne in a statement. “This choice demonstrates a major strategic change, giving the Córdoba plant a central role in FCA’s industrial activities in Latin America.”
Marchionne was joined by Argentine President Mauricio Macri and other government officials for the announcement, which was made during an event at Cordoba’s Ferreyra Plant.
The investment, FCA says, includes retooling the facility, installation of more than 150 robots in the body shop, supplier development, training and research and development.
The company did not say what vehicle will be built at the plant, just that it will be a “new mono assembled model built on a modular platform.”
FCA said the investment aligns with the Argentine government’s guidelines for the automotive sector, focusing on increasing levels of local integration and improving competitiveness. FCA expects the Cordoba produced model to incorporate higher local content of up to 50 percent, and have a strong export profile with over 80 percent destined for other markets within Latin America.
"This investment consolidates the Cordoba plant as a world-class production center and a hub for exporting throughout Latin America and other potential markets," said FCA Latin America Chief Operating Officer Stefan Ketter in a statement.