Fiat Invests Despite Losses

Italy’s Fiat announced it will invest $500 million in its Brazilian subsidiary through 2007 to launch new models in the highly competitive local market. The state of Minas Gerais, where the Fiat plant is located, will finance part of the investment. The company has invested over $1 billion in Brazil, its second largest market, since 2002. Fiat SPA lost €1.59 billion in 2004, its third year of losses.