Hyundai Plans New Low-Cost Small Car for Brazil

Hyundai will invest $600 million to build a new low-cost small car in Brazil that could be exported to neighboring countries in the Mercosul region.

The new plant, Hyundai’s second in Brazil, is to be located in Piracicaba, a countryside town in a region regarded as the “Brazilian California” for its high standard of living. The plant has a planned annual capacity of 100,000 units. Construction is slated to begin in 2009, with the first cars rolling off the line about two years later.

According to Hyundai Vice President Kim In-Seo, the model to be made in Brazil is already under development in Korea. The car will meet South American standards and will have 1.0- and 1.6-liter bifuel engines.

Hyundai already has a factory in Brazil, in association with local group CAOA. Located in Anápolis, about 120 miles from the capital city of Brasîlia, it produces the small HR truck and next year is supposed to build the compact Tucson.

The new facility in Piracicaba also could produce Kia cars in the future. Kia previously has been linked to a plan to build a factory in Salto, in the same region as Piracicaba.

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