According to fDi Markets data, Brazil has seen the number of automotive projects jump by 350% between 2006 and 2009. Although the US remains the main investment destination for the Americas, with 69 projects during this period, Brazil has emerged as a competitive new market, with 23 projects launched.

To meet a rise in domestic demand, General Motors plans to hire 600 new workers and Ford is to create 1000 jobs by increasing production at two factories. The company will invest $2.6bn in new manufacturing plants in the states of Ceará and Bahia.

European carmakers also have investment plans for Brazil – Germany’s Volkswagen is to invest $3.5bn in three new factories, Italy’s Fiat is pumping $1.8bn into the construction of three plants, and France’s Renault is to invest $571m in a new car for the Brazil market.