PSA Peugeot Citroen says it will begin building its Citroen C3 model in Brazil, part of a €50 million ($54 million) investment to bring the compact car to the country.

Peugeot says it initially will produce 15,000 C3s a year at its Porto Real, Brazil, plant. Output will increase there from 48,000 units last year to 67,000 this year to meet demand in Brazil, as well as Argentina, Uruguay and Paraguay.

Peugeot President and Chairman Jean-Martin Folz is quoted as saying that despite the economic slump in Brazil, the auto maker is determined to “correct the situation.” Peugeot has said it will invest $250 million there this year.