Brazilian group Latin American Motors (LAM) has decided to delay the project to build a car factory for China’s Great Wall Motors Company until 2014, financial news agency Reuters reported.
The factory, which will have an initial capacity to build 50,000 vehicles per year, was due to start being built at the beginning of 2013, requiring an additional investment of 1.9 billion reals (US$1 billion) which included both construction of the factory itself and setting up a network of showrooms.
Citing a market analyst, Reuters said that the decision had been made in February and that LAM planned only to delay the project, in which the Great Wall Motors Company will provide the technology.
Great Wall Motors, which was founded in 1976 and has its headquarters in Baoding, Hebei province, is a large Chinese manufacturer of sports vehicles. At the Brazilian factory it will manufacture open bed trucks and two SUVs (sports utility vehicles), one of which is small in size.
In 2012 officials from Great Wall Motors visited the cities of Ribeirão Preto and Guarulhos, in the state of Sao Paulo, as well as Joinville (Espírito Santo) and Salvador (Bahia), but the decision about the factory’s location has yet to be made.
Great Wall sold 620,000 vehicles in China in 2012 and in 2013 projections point to sales of 700,000 units, including exports of 140,000 vehicles. (macauhub)