Sao Paulo, Brazil, 4 July – Chinese automotive group Lifan and Brazilian automotive group Effa have signed a n agreement for construction of a vehicle assembly unit with an annual capacity of 10,000 vehicles and investment of US$100 million, the Brazilian press reported.
The Brazilian press said that last March the two groups had announced construction of a research and development centre located between Sao Paulo and Campinas, with total investment of US$70 million, to develop a city car and to research electrical vehicles.
Two of the Lifan group’s models, the 320 (a copy of the Mini Cooper) and the 620, have been on sale in Brazil since October and are imported from an Effa group factory in Uruguay.
The Lifan group, which was founded in 1992 in Chongqing, central China, has over 13,000 workers and is the second Chinese automotive company to announce construction of an assembly unit in Brazil in the last few months.
The Chery group is investing US$400 million in building a factory in Jacareí in the state of Sao Paulo. (macauhub)