RIO DE JANEIRO Stellantis will invest up to 2.5 billion reais ($508 million) in its plant in Rio de Janeiro state, its CEO for South America, Antonio Filosa, said on Friday.

The announcement happened at an event at the Guanabara Palace, the Rio state government's headquarters, and the funds are part of an investment cycle that ends in 2025.

"We want to provide investments of 2.5 billion reais by 2025," said Filosa, adding that the model C3 AirCross, a seven-seat SUV, will be manufactured at the plant.

The vehicle is the second announced within the current investment cycle, which should also include one more model, according to the executive. The first was the compact C3, launched in 2021.

($1 = 4.9172 reais)

(Reporting by Rodrigo Viga Gaier; writing by Peter Frontini; editing by Steven Grattan and Jason Neely)