Brazilian group Caoa has paid US$60 million for 50% of the business of Chinese group Chery in Brazil, which has a factory in the city of Jacareí and a network of resellers, according to Brazilian newspaper O Estado de São Paulo.
Inaugurated in June 2014, the Chery factory consumed US$400 million in investments and has the capacity to produce up to 50,000 cars per year, but the company never managed to assemble more than 10,000 units per year, and it was known that it had been looking for a Brazilian partner since 2016.
The President of the Brazilian group, Mauro Correia, said that the negotiations took less than 18 months and he hoped that the knowledge that the group has of the local market will allow the new company Caoa Chery to carry out the projects that Chery, on its own, was unable to.
The Caoa group, in addition to producing vehicles of South Korean brand Hyundai in Anapolis, in the state of Goias, as well as cars of Japanese brand Subaru and US brand Ford.
Correia also said that the objectives of the Caoa group are ambitious, and it intends to launch new products from 2018 to attain, five years later, a share of 5% of the Brazilian car market. (macauhub)