Brazilian group Caoa, which distributes Ford, Subaru and Hyundai vehicles, acquired 50% of the Brazilian operation of the Chinese group Chery and said it planned to invest US$2 billion in this business over the next five years, according to a joint statement released on Saturday.
The subsidiary of the Chinese group will now be called Caoa Chery and will use Brazil as a base for export to the whole of Latin America, from factories in Anapólis (State of Goiás) – where the Brazilian group assembles the vehicles of the Hyundai brand – and in Jacareí (São Paulo State), where Chery factory is located.
The Caoa group (named after its founder Carlos Alberto de Oliveira Andrade) gave assurances that the existing partnership with South Korea’s Hyundai will not be affected by this decision on, “a purchase that will enable the introduction of new technologies, as well as the development of new products,”, according to the current chairman Mauro Correia.
The Brazilian group did not disclose how much it paid to become a Chery shareholder, and the deal was only made public on Saturday after the Chinese group published its strategic plan for the coming years.
Brazilian newspaper O Globo wrote that this deal marks a return to investment in the country’s car sector, which is showing the first signs of recovery after successive years of sharp decline, with an increase of 7.4% in sales of cars and light commercial vehicles.
In September, South Korean brand Ssangyong announced it would start selling in Brazil again in 2018, in partnership with Brazil’s Venko Motors. (macauhub)