Chery Automobile manufactures first vehicle at Brazilian factory

10 June 2014

Chery Automobile is the first Chinese automotive company to manufacture vehicles in Brazil after, on 3 June, the first unit of its Celer model left the assembly line of its factory in Jacareí, in the state of Sao Paulo, the Brazilian press reported.

The model will be mass produced starting in August, with sales scheduled for November, but the unit that has now left the production line already has the recently revealed changes in appearance compared to the version that is currently sold in Brazil.

At the ceremony, the president of Chery Automobile, Roger Peng, said that the target in Brazil was to achieve a market share of 3 percent between 2017 and 2018, when the factory is expected to produce 150,000 vehicles per year.

The Celer model produced in Brazil will have an initial national incorporation (locally-produced components) of 50 percent, including the engine, which is also manufactured in Jacareí, seats, suspension, tyres, batteries, bumpers and part of the dashboard.

Most of the parts will be sourced from companies operating within a 100-kilometre radius of the factory and some of the suppliers are planning to set up production units next to the Chery Automobile factory.

The two vehicle assembly and engine manufacturing factories required investment of US$400 million and US$58 million, respectively. Brazil is the first country to have a complete Chery Automobile factory outside China. (macauhub/BR/CN)