Chinese group Chery continues with plans to build car factory in Brazil

7 October 2011

Sao Paulo, Brazil, 7 Oct – Plans to build a factory in Jacareí in the Brazilian state of Sao Paulo remain unchanged, despite a rise in taxes on imported vehicles, the Brazilian subsidiary of Chinese state automotive company Chery Automobile said Thursday.

In a statement cited by the Brazilian press, Chery in Brazil said that the company may have to adjust its factory construction project, but gave no details of whether investment or the schedule would be affected.

Chery Automobile Co. chose Jacareí, 82 kilometres from Sao Paulo, to install it factory in Brazil, where it plans to invest 1.2 billion reals, with an initial production capacity of 170,000 units per year.

The investment will be provided by the group itself, which will give up its partnership with Brazilian group JLJ, from Salto (Sao Paulo), the current importer of Chery vehicles.

The Brazilian government recently increased taxes on Industrialised products by 30 percentage points, which will be applied to vehicles that do not contain at least 65 percent Brazilian-made components. (macauhub)