Chinese group Chery Automobile Co Ltd has taken direct control of its operations in Brazil, which had so far been managed by Brazilian company Avenco, from the city of Salto, in the state of São Paulo, the Brazilian press reported.
The new board of directors will both control imports of cars and construction of new cars at its factory in Jacareí, in Vale do Ribeira, São Paulo state. The land where the factory will be located is currently being cleared and levelled and the project is expected to be ready in 2013 and cost the Chinese group US$400 million.
Chery, which is the largest vehicle manufacturer in China, ended 2011 with 33,000 units sold in Brazil but, although the projection for this year was to sell 60,000, the 30 percentage point increase in Tax on Industrialised Products for imported vehicles reduced that projection to 30,000 units.
Now that the factory is under construction the Chinese group is hoping that the Brazilian government will reduce its demands on imports, and the cars produced at the future factory will start out being 65 percent nationally-produced as required by Brazilian legislation.
Chery plans to set up an Industrial centre in the Jacareí factory with several Brazilian and Chinese manufacturers to produce parts and systems for the company. (macauhub)