Chinese Dongfeng also wants to erect plant in the country
O Estado de S. Paulo
The Chinese maker Dongfeng Motor Corporation will begin selling its vehicles in Brazil and it plans, on a second stage, to open a local plant. Company executives and a delegation from the Chinese province of Hubei were yesterday in São Paulo and they met entrepreneurs and the President of the São Paulo Agency for the Promotion of Investments and Competitiveness - Investe São Paulo, Mario Mugnaini Jr.
The Vice General Manager of Dongfeng, Zhou Qiang, presented the company structure and the expansion plans. "Internationalization is not merely a choice but a necessity. We want Brazil to be our front door to South America, since it is already the strongest country in Latin America", said Qiang on a note. A cooperation agreement was signed at the meeting with a partner that will represent the brand in Brazil, the Ipanema group, which operates on the resale of vehicles.
The National Federation of Distribution of Automotive Vehicles (Fenabrave) presented the Chinese a balance of the automotive vehicles in the Brazilian market. On his turn, the President of Investe São Paulo showed the competitive advantages of São Paulo and the incentives the Government of the State of São Paulo offers the automotive industries.
"Besides factors such as logistics, consumer market, human resources and infrastructure conditions, the State has a program to encourage investments made by automobile manufacturers, called Pró-Veículo, which foresees the suspension of the payment of ICMS (State Sales and Services Tax) on the acquisition of goods, equipment, and parts", said Mugnaini.
Another Chinese group, Chery, has recently announced the construction of a plant in Jacareí (SP), with its operations scheduled to start in 2013. The project will consume investments of nearly R$ 700 million (US$ 411.8 million).