Chinese auto maker planning a plant with a production capacity of 170.000 units

Friday, August 6th 2010 - 00:28 UTC

Full article 3 comments

Chery motors have plans to spend 700 million US dollars in Sao Paulo

Chinese auto-maker Chery Automobile Co. will spend 700 million US dollars on a plant in Sao Paulo, Brazil's wealthiest state, the local newspaper o Estado de S. Paulo reported in its Thursday edition.

The report, which cited an unnamed person close to the company, said the facility will be based in Jacarei city and will have an annual production capacity of up to 170,000 units. The plant is expected to start production in 2013.

Chery's executives signed a memorandum of understanding with local authorities at the end of this month, the report said. The investment planned by Chery came as Brazil's auto industry expands.

Brazil industry sold a record 3.14 million vehicles last year, up 11% on the year, reflecting the country's fast recovery from the global slowdown. Brazilian Motor Vehicle Manufacturers Association, or Anfavea, expects an increase of 8% in sales in 2010.

Auto makers are scheduled to invest 11.2 billion USD between 2010 and the end of 2012 on new models, new technologies and expansion, according to Anfavea. For the 2007/09 period car makers invested 8.1 billion.

The main auto companies in Brazil are Fiat, Volkswagen AG, General Motors Co., Ford Motor Co. Toyota and Honda.

Categories: Investments, Brazil.

Tags: Brazil, car, China.

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Forgetit87
The government needs to change its current exchange rate. We can't keep having this overvalued currency that does no good to our industries. If China is to make the damn plant, and the government doesn't change the currency's exchange rate, it will be the end of our so far successful auto industry.
Aug 06th, 2010 - 01:16 am 0
Nicholas
Forgetit, don't be silly,

There is nothing wrong with an overvalued currency. A strong currency is good for the people (meaning, strong purchasing power). What brazil needs to do is simple..reform the tax code what is ridiculous outdated, and if it's possible (what is difficult everywhere) cut government. You can compete with a strong currency if you do the right things.
Aug 06th, 2010 - 04:30 am 0
harrier61
Is that picture of the car? Should be quite cheap. Looks like you punt it along with one foot out of the door.
Aug 09th, 2010 - 06:40 pm 0

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