Chinese group Chery plans to set up supplier chain in Brazil

12 April 2012

Chinese group Chery Automobile Co., Ltd. plans to make its vehicles in Brazil using 65 percent locally-produced parts and is currently negotiating to set up a chain of Brazilian suppliers, the chairman of Chery Brasil said Monday in Sao Paulo.

On the sidelines of the 3rd Forum for the Automotive Industry, Luis Curi said that his company had already set up a number of meetings with parts manufacturers in Brazil in order to set up a chain of suppliers for the factory that the Chinese group is building in Jacareí, in the interior of the state of Sao Paulo.

Curi also said that everything was being done to speed up the construction of the factory in order to meet the standards set by the new automotive regime, which was published by the Brazilian government last week.

The chairman of Chery Brasil said that the decision to build a factory in Brazil was not because of the increase in the Tax on Industrialised Products (IPI) but rather because of the time it took for vehicles imported from China to arrive in Brazil.

“Chery was represented by an importer, but with the announcement of the rise in IPI on imported vehicles everything changed and, after we did the calculations, we concluded that the group would have to take on responsibility for operations in Brazil, given the new reality of the market,” Curi said. (macauhub)