SAO PAULO: French carmaker Renault SA said it will invest 2 billion reais ($377.12 million) in Brazil for the production of a new sport utility vehicle (SUV) and a new 1.0 turbo engine, according to a company statement late on Thursday.

Production of the new car had been announced in March, but the group was awaiting approval from its parent company for the new investment plan.

“Latin America is of great importance to the Renault Group and we are investing to offer products in the countries of the continent in line with our global strategy,” said Jose Vicente de los Mozos, an executive vice president at Renault Group.

The investment is part of the company’s strategic plan in Brazil, said Renault.

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The investment will be for production at the company’s Sao Jose dos Pinhais factory, located in Brazil’s southern state of Parana, which will get a new Common Module Family-B platform allowing a “potential electrification” in the future, the company said.

“This is an important phase for Renault in Latin America, as we are preparing to launch new products and engines for our customers with the best Renault Group technology in the world”, said Luiz Fernando Pedrucci, president of Renault Latin America.

In March 2021, Renault had announced an investment of 1.1 billion reais in Brazil. At the time, the company said it would make five product launches by mid-2022, including two electric vehicles in the country.

Renault has operated in Brazil for over 23 years, the company said in the statement.