Commercial and light passenger vehicles of Chinese companies Changan Automobile and FAW Haima Automobile as well as of South Korea’s SsangYong Motor are set to be manufactured at a factory to be built in Linhares, in the Brazilian state of Espírito Santo, the Brazilian press reported.
The factory was initially designed to assemble the vehicles, as part of a process known as complete knock-down (CKD) but after new legislation acme in for the automotive sector this idea was dropped in favour of a factory that will actually manufacture the vehicles.
During the Sao Paulo automotive Salon, Abdul Ibraimo, chief executive of Districar, the exclusive importer of the three brands into Brazil said that production would begin at the end of 2014 or beginning of 2015.
The Linhares factory will produce Changan commercial vehicles and Haima and SsangYong light passenger and Changan light passenger vehicles are expected to be manufactured at a future production line in Anápolis (Goiás state).
The aim, according to Ibraimo, is for the three brands together to provide a complete range of vehicles to compete in all segments.
The chief executive of Districar also said that the factory in Goiás would cost between US$280 million and US$300 million and would be financed by Brazilian bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES). (macauhub)