Nexteer, a supplier of steering gears, has announced plans to invest BRL57 million to build a new electric steering production line at its existing factory in Porto Alegre. Valor Economico reports that the investment will enable the acquisition of new equipment as well as creating 100 new jobs. The new line is forecast to be operational in the first half of 2016, though the company has not disclosed the customer for the expanded production. Nexteer reports that the investment could triple output.

Significance: Brazil's Innovar Auto programme encourages supplier and automaker investment in the region, despite the country's slowdown in 2013 and 2014. In 2016, plants from China's JAC (Jianghuai Auto), Daimler, and Tata are due to come online, following BMW, Honda and Fiat coming online in 2015. IHS Automotive forecasts vehicle production will increase from 2.98 million units in 2014 to 3.55 million in 2018. Nexteer, formerly a GM-held supplier, came under ownership by China's AVIC Automobile Industry Holding Company in 2011. Among investments since AVIC took an ownership stake, are plans to build a plant both in Poland and China as well as expanding its Michigan (United States) operations.