China’s auto makers to build factories in Brazil
China’s auto makers to build factories in Brazil in the news over the past few days caused by the Brazilian media and the heat that the automobile industry.
Brazil, “Sao Paulo newspaper page,” the first to disclose that on the 24th, the Chinese Chery Automobile plans to invest in 2011, before the 500-700 million U.S. dollars and set up factories in Brazil, it will be China’s first automobile manufacturer into Brazil. Chery Automobile, according to the president of Brazil, Luis? Curitiba, the new plant will reach an annual production capacity from 100,000 to 150,000. He said that the Chery’s goal is not only the Brazilian market, but also the use of the Southern Common Market free flow of goods between member countries of the condition, to Brazil as an export base for cars exported to other countries in South America.
Brazil is the world’s auto market has perpetually been cross-border vehicle manufacturers in the competition. According to the Brazilian automobile manufacturers association’s statistics, even in the conflict against fiscal critical purpose, the in the household automobile sales in Brazil last year still arrived at 2.82 million, an advance of 14.5%. Two years in the past, Chery Automobile to set its spectacle on the automotive market in Brazil, and conveyed major managers to visit Brazil. The first as an financial endeavour, JLJ Enterprises Chery connection endeavour with Brazil, Uruguay, in neighboring nations to initiate a terminal assembly vegetation, imported from China for assembly Chery Automobile Accessories, and then marketed to Uruguay, Argentina and Brazil. The assembly vegetation as a effect of the annual goods produced scope for is constricted to 25,000, so resolved to Chery right away into Brazil. Lewis said that at present, Chery has not yet picked the place, what will be the goods produced of types of vehicles are in addition under study. As a first step, this year, Chery will be in the south and south-eastern Brazil to invest in 10-15 motor vehicle sales outlets, the first trade overseas to the Brazilian market of the enterprise in five types of vehicle.
Chery to go in Brazil, but furthermore faces numerous challenges. Brazil, the world’s biggest manufacturer of bio-fuels, commenced five years before on the use of both blended petrol, alcoholic beverage fuels can furthermore use the “flexible fuel” vehicle. Last year, the “flexible fuel” vehicles auto sales have come to 86% of the total sales volume. Louis said, “We set up manufacturers in Brazil, we should evolve flexible fuel vehicles, the expertise we do not have, but the R & D center is doing this task next year can be put to the Brazilian market.” In supplement, Chery furthermore face other vehicle trader competition. At present, Fiat, Volkswagen, General Motors, Hyundai designs to spend all of the expansion of output capability in Brazil.
The attainment of the Chinese motor vehicle producer has in addition aroused anxiousness Brazilians. Brazil, “Business News” reporter Anna? Machado said, “In fresh years, the Brazilian auto development, like ‘Chinese Dragon’, like in the quick development of China has aroused the coveted motor vehicle manufacturers.” Said the Brazilian development, Chery’s financial endeavour positions, as well as motor vehicle goods produced in Brazil, only a tiny share of the market, but the quick development of China’s auto development, automotive worth and charge competitiveness of the growing motor vehicle manufacturers in Brazil is truly anxious about is the item that the competent edge. Like Brazil Automobile Manufacturers Association President Jackson? Schneider said, “At present, the market in Brazil has been a tiny number of Chinese motor vehicle sales, is not too great. However, if the automobile manufacturers in China to Brazil or the Southern Common the market to invest and set up production plants in Brazil the number of automobile manufacturers would sense uneasy.