Accelerates automotive production in Rio de Janeiro.
The automotive hub, near the border with São Paulo, is set to receive more private investment; Citroen (above) is one of the companies that intends to increase production.
Just minutes from the border with São Paulo, the automotive hub in the south of Rio de Janeiro state has been attracting billions in investments. The fourth largest vehicle producer in Brazil, a position it reached in 2010 after surpassing Rio Grande do Sul and Bahia, Rio is preparing for another leap and could take third place among the largest manufacturers from Paraná – after São Paulo and Minas Gerais.
The funding for this should come mainly from a potential investment by Nissan in the construction of a factory in Resende, which could reach R$ 2 billion. The decision was made recently, according to sources linked to the negotiations. The company plans to begin construction in March of next year and start production in 2013. The capacity will be 200 vehicles per year. The company, however, does not confirm this information.
The choice of Rio de Janeiro over Paraná, where Nissan already has a factory, was reportedly influenced by union leaders, according to industry executives. The power struggle between companies and workers' representatives in the southern state over wage increases well above inflation is said to have led Nissan to opt for Rio.
The expected investment from Nissan, along with new investments that PSA Peugeot Citroën and MAN/Volkswagen Buses and Trucks intend to make in the region, is encouraging the Rio de Janeiro government, which is already talking about the "ABC Fluminense," a reference to the ABC Paulista region, the cradle of the national automotive industry. This information comes from the newspaper O Estado de S. Paulo.