BUENOS AIRES, ARGENTINA - French carmaker Renault will invest 500 million pesos (S$194 million) between 2009 and 2011 in its Argentine unit to begin production of a new vehicle and modernize a plant, the company said on Tuesday.

Renault did not provide details on the new model or when production will begin.

Some 335 million pesos will go to the production of the vehicle, with 165 million pesos destined to upgrade the company's plant in the central province of Cordoba.

The investment comes as Argentine auto production has fallen 35.5 percent in the first five months of the 2009 as a slowing economy saps local car demand.

Renault said the vehicle will be targeted to the Latin American market.

Renault produces some 60,000 vehicles a year at its Santa Isabel plant, including the Clio, Symbol and Kangoo models.

(Reporting by Lucas Bergman; Writing by Kevin Gray; Editing by Gary Hill)