Automobile manufacturers in Brazil will invest US$4.9 billion in 2008, more than double what was invested in 2007, a manfacturing association said Monday.According to the Brazilian Motor Vehicle Manufacturers Association, the increased pace of investment responds to growing demand in Latin America's largest nation.

"The investments are being made because there is confidence that the market will grow," association President Jackson Schneider said at a press conference.

Brazilian auto makers have been setting records for production and sales due to falling interest rates, economic growth and higher consumer spending.

Between 2008-2010, automakers and auto parts firms will invest around US$20 billion (€13 billion), Schneider said.