Renault to Hike Brazil Engine Capacity 25%

Renault SA plans to boost annual capacity at the engine factory in its manufacturing complex in Curitiba, Brazil, by 100,000 units to reach 500,000 engines by next year.

The company did not disclose how much it is investing in the plant expansion.

Renault said last October it would increase annual capacity at the adjacent car and light commercial vehicle facilities by 100,000 units for a total of 380,000 vehicles by early next year.

The company's alliance partner Nissan Motor Co. is erecting a new 2.6 billion-real (€1 billion) assembly plant in Resende. The factory is scheduled to open by the end of 2013 with capacity of 175,000 subcompact cars per year.

Nissan exported cars and trucks from Mexico to Brazil until last month when it suspended shipments because the South American country hiked import tariffs.