Honda to Bring Acura Brand to Brazil

Carmakers frustrated by slumping sales in Europe and cooling expansion in China are counting on future demand in Brazil to spur growth.

Honda says it plans to introduce its Acura luxury brand in Brazil in 2015. At the Sao Paulo auto show, the company also unveiled the Honda Fit Twist, a variant of the Fit compact designed specifically for the local market.

Honda expects to debut a new lineup of flex fuel vehicles which are big sellers in Brazil including versions of the Civic compact car and CR-V crossover vehicle.

BMW confirms it will invest more than €200 million ($260 million) to erect a new assembly plant in Brazil's southern state of Santa Catarina. The company expects to employ 1,000 people at the facility, which would open in 2014 with capacity to make 30,000 vehicles.

Volkswagen AG, which calls Brazil "a cornerstone" in drive to become the world's largest carmaker by 2016, is spending €3.4 billion ($4.4 billion) to expand its lineup and capacity there.

Other automakers gave Sao Paulo show-goers the first look at an array of new models, a number of them developed for the local market. Most companies are betting on rising sales of luxury vehicles, small cars and compact SUVs and crossovers.

Nissan unveiled its Extrem sporty coupe concept, which was designed for Brazil. The company is constructing a new assembly plant in Resende, Brazil, that is due to open in the first half of 2014.