Despite the dismal prospect for the Brazilian automotive segment, the country is expected to receive foreign investment for its struggling auto industry, according to media reports.
Brazilian reports said the city of Sete Lagoas, in the state of Minas Gerais, should receive investments from Amsia Motors, an Asian automaker supported by Arab investors.
The city hall of Sete Lagoas has confirmed the investment, which is expected to be announced by June this year, but declined to comment the project as conversations are confidencial.
Amsia Motors is specialized in vehicles fueled by clean energy, such as hybrid and electric cars, which have not yet been developed in the nation’s automotive industry.
A Brazilian official said “other [auto] businesses” are expected to come to Brazil in the coming years. “We’ve scheduled the coming of a group’s representative [an Arab sheik] to Sete Lagoas in the beginning of June this year for the signature of the intentions agreement,” Saulo Queiroz, the city secretary said.
Amsia representatives are reportedly to have come to Minas Gerais’ capital, Belo Horizonte, in March to discuss investment possibilities.