BNDES approves R$ 153,1 million for Fiat in Minas Gerais.
The funding aims to modernize and adapt the factory for the production of military vehicles, the launch of new versions of commercial vehicles, the construction of test tracks, and investments in research and development; it is estimated that 969 jobs will be created by December of next year.
Mines 247 - The Brazilian National Bank for Economic and Social Development (BNDES) has approved two financing projects, totaling R$ 153,1 million, for investments by the Fiat Group in Minas Gerais. The funds aim to modernize and adapt the factory for the production of military vehicles, launch new versions of commercial vehicles, build test tracks, and invest in research and development. The project will require a total investment of R$ 265,5 million and is estimated to generate 969 jobs by December of next year.
One of the operations, valued at R$ 146,1 million, is with Iveco Latin America Ltda., part of the Fiat Group. The project aims, among other things, to develop an armored personnel carrier for the Brazilian Army. The company participated in a national selection process in 2007 and signed a contract in 2009 to supply 2.044 of these vehicles, to be produced at the industrial complex in Sete Lagoas.
According to information from BNDES (Brazilian Development Bank), the platform will serve as the basis for ten models, with design variations according to the Army's specifications. The first batch, for testing, consists of 86 units, of which four had already been delivered last year. The investments in national engineering included in the project encompass reliability and durability studies and the inclusion of optional features.
The other financing approved by BNDES, this one directly to Fiat Automóveis SA, amounts to R$ 7 million and will be used for the development of a new high-efficiency ethanol engine in Betim, in the metropolitan region of Belo Horizonte. The financing was granted under the BNDES PSI program and the BNDES Innovation line. The new engine aims to reduce losses and noise levels.
It will also harness the energy from exhaust gases. The company's goal is to produce two prototypes by the end of next year. Designed for mid-size and popular cars, the new engines should reach the market in 2016.