JAC Motors invests in car plant in Brazil

19 December 2017

Chinese company JAC Motors plans to invest 200 million reais (US$60 million) in the construction of a factory in Itumbiara, in the Brazilian state of Goiás, to build cars from parts imported from China, with production expected to start in 2019, Brazilian publication Folhapress reported.

Representatives of the company travelled to Goiânia on Monday to present the project to the state governor, Marconi Perillo. The plant will have an initial capacity to produce 35,000 vehicles per year, and compact SUV T40 model will be the first to be assembled in Brazil.

In August 2010 JAC Motors announced the construction of a factory in Brazil, in which it would invest 900 million reais for the production of compact models, with the unit having capacity for 100,000 vehicles per year and requiring 3,000 direct workers.

However, a month after this announcement the Brazilian government announced changes to import rules, which increased taxes on imported vehicles.

The Chinese company gave up on the idea of ​​building a factory in Brazil in early 2017, but given that it had received incentives from the Inovar-Auto programme, it decided to resume the project in the state of Goiás, otherwise it would have to pay a large fine. (macauhub)