Friday 8 May 2009

China's auto makers to build factories in Brazil

By Zou himfr

China's auto manufacturers to construct manufacturers in Brazil in the report over the past couple of days initiated by the Brazilian newspapers and the heat that the automobile industry.

Brazil, "Sao Paulo bulletin page," the first to reveal that on the 24th, the Chinese Chery Automobile designs to invest in 2011, before the 500-700 million U.S. dollars and set up manufacturers in Brazil, it will be China's first automobile constructor into Brazil. Chery Automobile, as asserted by the leader of Brazil, Luis? Curitiba, the new vegetation will come to an annual output capability from 100,000 to 150,000. He said that the Chery's aim is not only the Brazilian market, but furthermore the use of the Southern Common Market free flow of items between constituent nations of the status, to Brazil as an trade items groundwork for vehicles exported to other nations in South America.

Brazil is the world's auto market has always been cross-border vehicle manufacturers in the competition. According to the Brazilian automobile manufacturers association's statistics, even in the fight against financial crisis, the domestic automobile sales in Brazil last year still reached 2.82 million, an increase of 14.5%. Two years ago, Chery Automobile to set its sight on the automotive market in Brazil, and sent senior executives to visit Brazil. The first as an investment, JLJ Enterprises Chery joint venture with Brazil, Uruguay, in neighboring countries to establish a final assembly plant, imported from China for assembly Chery Automobile Accessories, and then sold to Uruguay, Argentina and Brazil. The assembly plant as a result of the annual production capacity is limited to 25,000, so decided to Chery directly into Brazil. Lewis said that at present, Chery has not yet selected the site, what will be the production of models of vehicles are also under study. As a first step, this year, Chery will be in the south and south-eastern Brazil to invest in 10-15 car sales outlets, the first exports to the Brazilian market of the enterprise in five models of vehicle.

Chery to enter Brazil, but also faces many challenges. Brazil, the world's largest producer of bio-fuels, launched five years ago on the use of both mixed gasoline, alcohol fuels can also use the "flexible fuel" vehicle. Last year, the "flexible fuel" vehicles auto sales have reached 86% of the total sales volume. Louis said, "We set up factories in Brazil, we must develop flexible fuel vehicles, the technology we do not have, but the R & D center is doing this project next year can be put to the Brazilian market." In addition, Chery also face other car dealer competition. At present, Fiat, Volkswagen, General Motors, Hyundai plans to spend all of the expansion of production capacity in Brazil.

The appearance of the Chinese vehicle manufacturer has furthermore aroused disquiet Brazilians. Brazil, "Business News" reporter Anna? Machado said, "In latest years, the Brazilian auto commerce, like 'Chinese Dragon', like in the fast development of China has aroused the coveted vehicle manufacturers." Said the Brazilian commerce, Chery's buying into locations, as well as vehicle output in Brazil, only a little share of the market, but the fast development of China's auto commerce, automotive value and cost competitiveness of the growing vehicle manufacturers in Brazil is actually concerned about is the detail that the comparable edge. Like Brazil Automobile Manufacturers Association President Jackson? Schneider said, "At present, the market in Brazil has been a little number of Chinese 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 manufacturers in Brazil the number of automobile manufacturers would seem uneasy.

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