Joinville City, Brazil – General Motors Brazil has announced that it will build a new engine and automotive components plant in Joinville City, in the country’s Santa Catarina State. The plant will require an investment of US$200 million and is scheduled to begin production in the fourth quarter of 2009, employing 500 people and generating 1,300 indirect jobs.

“The decision to build a new engine plant in Brazil is essential to our ability to expand vehicle production capacity throughout the Mercosul Region,” said Jaime Ardila, president of General Motors Brazil.

The 500,000-square-metre facility will include a 60,000-square-metre plant with the capacity to produce 120,000 engines and 50,000 cylinder heads per year. At full capacity, it will operate on three shifts. Advanced processes will include flexible machines for rapid production changes, and a system that allows operators to test engines without using fuel, eliminating the generation of contaminants inside the plant.

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