Chinese Chery plans US$ 700 million factory in Brazil
Valor Econômico 04/24/2009
The Chinese bet in Brazil. The Brazilian automotive market, which increased in the pace of the Chinese dragon in the last years, gives rise to the hunger of the car makers of the country of the Great Wall. Chery, which starts selling three models in the National market this year, already studies the setting up of a plant in Brazil until 2012. The international CEO of the group, Yin Tongyao, said the growth of the Brazilian market is worthy of the great emerging countries - Russia, and India and China itself. Because of that, there are negotiations for the firm entrance in the Country. "But, before we build a plant in Brazil, we need to develop the flex fuel technology, which we still do not control. But our development center is already working on this project", said the officer.
It is planned the launching in the Brazilian market of at least one Chery model with the biofuel technology next year. Chery's plan is to make of Brazil its export base for Latin America. The CEO of Chery in Brazil, Luis Curi, said nearly US$ 700 million should be invested in the implantation of the Brazilian plant. The initial capacity is between 100 thousand and 150 thousand cars produced a year. "From Brazil, we will ship the models to the Latin American countries. We are in the phase of definition of the site where the plant will be installed", said Curi, who is part of the JLJ Group, which entered into a partnership with the Chinese makers to sell the cars made by Chery in Brazil. Curi said that, in the first stage of organization of the network of dealerships were invested US$ 35 million. "We will have between 15 and 20 Chery dealers in Brazil at this first moment. All of them concentrated in the main cities of the South and Southeast of the Country. They are models that fit the profile of the consumers of those regions", he added.