Dongfeng sign partnership in Brazil
Valor Econômico
Another Chinese automaker, Dongfeng, decided to settle in Brazil and São Paulo is, so far, the state most likely to receive the company's future plant. A delegation of 14 members, including representatives of the government of Hubei province and suppliers, besides executives of the very Dongfeng, came to São Paulo to choose a partner among the six companies with which they have negotiated in recent days. The cooperation agreement will be signed today.
The chosen partner will represent the brand in Brazil in the stage that foresees the sale of vehicles of the brand imported from China. The second phase of the exploration strategy of the Brazilian market foresees the construction of a plant in Brazil. The initial idea is also include the representative of the brand in Brazil in this project. The production of 1.9 million units in 2009 puts the Dongfeng among the three largest vehicle manufacturers in China.
The deputy general director of Dongfeng, Zhou Qian, will carry out today an official presentation of the company's plans to representatives of the Secretariat of Development of the State of São Paulo, and will attend a presentation on the Brazilian market of Fenabrave, the association that represents car dealers in the country. The Government of São Paulo will take advantage to detail the program of incentives of the State. Besides vehicles, Dongfeng, a state company, produces parts and equipment. In the portfolio of vehicles, it has models of all sizes and all tastes. It produces passenger cars, vans, trucks and buses. The Chinese group already has a number of partnerships with other automakers. Acts with the Korean Kia Motors, with the Japaneses Honda and Nissan and the French group PSA Peugeot Citroen.
O Estado de São Paulo started ahead in the dispute for the auto plants of Chinese brands. In mid-September, Chery announced plans to invest US$ 400 million in a plant in Jacarei, nearly 80 km from the state capital. In the first phase of the project, Chery will invest US$ 134 million. The inauguration of the new undertaking is planned for late 2013. In the first phase 50 thousand vehicles will be produced annually, with the creation of nearly a thousand direct jobs. In the second phase of the investment, according to what was announced by the automaker to the State government, three thousand Jobs may be created, with production capacity of 150 thousand vehicles per year. Near the Via Dutra, the unit of Chery Will have one million square meters of built area. Chery models are being produced in Uruguay, in partnership with the group Macri. The growth of the Brazilian market has attracted the attention of vehicle manufacturers around the world. But this year was that the plans of Asian brands started standing out. Besides the Chinese, the State of São Paulo has already attracted the Korean company Hyundai, which is in the beginning of construction of a plant in Piracicaba.
In the first nine months of the year, the sum of the vehicles brought from China and Korea accounted for 26.5% of the volume of imported vehicles in Brazil.