SAO PAULO – Renault SA may build a new car in Brazil that is under development in France, says Pierre Poupel, president of Renault in Brazil.

Poupel made the announcement during a recent visit with Luiz Fernando Furlan, Brazil’s minister of industry and commerce. The French auto maker will make a final decision within two months, he says.

Other countries in the running are Spain and Mexico. Investment in the new model is estimated at $100 million-$150 million.

Industry observers say because Renault only is using 40% of its industrial capacity here, the Brazilian subsidiary would be an ideal choice. Renault to date has invested a total of $1.5 billion in Brazil.