General Motors GM.UL will invest 1.4 billion reais ($778 million) to modernize and expand two plants in Brazil, the company said on Monday.
The investment will be used to renew the current line of production at the Sao Caetano do Sul and Mogi das Cruzes plants, both in Sao Paulo state, the company said in a statement.
The investment is part of the renewal of the Chevrolet production line and includes two new models that will be produced for the Brazilian market and for export, the company said.
"The new plan is part of our long-term strategy of investments of 5 billion reais between 2008 and 2012 that allows us to increase production capacity and totally renew our portfolio of Chevrolet vehicles in Brazil," Jaime Ardila, president of General Motors in Brazil, said in the statement.
Brazil, Latin America's largest economy, is a major market for Italy's Fiat SpA, Germany's Volkswagen AG, and U.S.-based Ford Motor Co and General Motors.
