Fiat Plans $7.5 Billion Expansion in Brazil

Fiat SpA says it will invest 15 billion reals ($7.5 billion) in Brazil through 2016 to expand its capacity to produce cars, commercial trucks, heavy equipment and engines.

The program is an extension of Fiat's previous plan to invest 9 billion real ($4.5 billion) in Brazil between 2011 and 2014. With the latest addition, the company expects to create about 7,700 jobs by 2016.

The entire outlay will include expansion of existing facilities and construction of new factories, including one to produce military trucks under the company's Iveco brand. But the investment does not include affiliate Chrysler Group LLC, whose sales in Brazil aren't large enough to merit local production, Fiat says.

The company delivered 596,900 vehicles last year in Brazil, making it the top-seller in a market that grew to a record 3.8 million vehicles in 2012.