China’s Chongqing Lifan group buys Brazilian motor company

6 March 2006

Shanghai, China, 06 March – The Chongqing Lifan Group, the market leader in China for engine production, is to acquire Tritec, Daimler-Chryslerand BMW’s Brazilian engine factory, according to Friday’s edition of the Shaghai Daily newspaper.

The paper said that Chongqing Lifan, a private company which in December was granted a government authorization to produce cars, will be the only company to compete for the acquisition of the Tritec factory, located in Campo Largo, in the metropolitan region of Curitiba, the state capital of Paraná in southern Brazil.

“After the sale, we are going to take over the whole production line, disassemble the factory and bring it back in pieces to set it up in the city of Chongqinh, in southeast China,” a marketing director told the Shanghai Daily.

The Tritec factory cost US$500 million to build and launch back in 1996, and uses the most modern technology from the US and Germany to build Tritec 1.6, 16 valve engines for the Mini Cooper, amongst other vehicles.

The Lifan Group, which was set up in 1992, plans to transport the Brazilian factory to China over the next few years, in order to start producing engines in China by 2008.

Currently, the Brazilian factory produces around 250,000 engines per year.(macauhub)