Chery’s Brazilian plant to start production end 2013

chery-beta-5

Chery, China’s largest passenger vehicle exporter, says that its new plant in Brazil will start production either at the end of this year or the beginning of 2014. The full-scale plant, as opposed to a CKD assembly facility, will allow Chery to avoid Brazil’s high custom duties on imported vehicles. It will be the first full-scale factory built by a Chinese automaker in the country.

The plant is located in Sao Paulo, the largest city in the South American nation, and its first product will be the Chery Celer subcompact, also known as the Fulwin 2 in China. The 1.5 litre hatchback will be powered by a flex-fuel engine designed to run on gasoline and ethanol, the norm in Brazil.

With a total investment of $400 million (RM1.32 billion), the plant will produce up to 150,000 vehicles a year after a second phase of construction is completed. Chery started exporting vehicles to the Brazil in 2004 but sales were hit hard after the government raised import duties on imported vehicles. In the first half of this year, Chery sold 2,504 cars in Brazil, down 73% year-on-year.

Closer to home, Chery will set up a factory in Malaysia that will begin operations in 2014, according to reports from China. The plant won’t be just making cars for local consumption, but will assemble vehicles in knockdown form to be exported to countries in South Asia and ASEAN. Click here for the full story.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • kadajawa on Aug 20, 2013 at 4:26 pm

    Wow looks like VW Tiguan…hopefully Proton can learn one or two from Chery

    Like or Dislike: Thumb up 12 Thumb down 1
  • looks nice….how I wish proton’s top management would allow their designers design to be manufactured..sigh

    Like or Dislike: Thumb up 6 Thumb down 1
  • tikus on Aug 20, 2013 at 6:14 pm

    See…China car already in South America.How about our proudly proton doing?? Still struggling?? Sup Rima how?? Just look at China car design now this days…Nice!! proton management please wake lar!!Dont sleep or talk big about your sup rima.Number of sale do the talking ok.

    Like or Dislike: Thumb up 10 Thumb down 2
  • nice..pls bring it here!!

    Like or Dislike: Thumb up 1 Thumb down 1
  • gOOsh on Aug 21, 2013 at 8:38 am

    give them few more years… they’ll be on par with korean makes…

    Like or Dislike: Thumb up 2 Thumb down 2
  • Han!h on Aug 21, 2013 at 4:22 pm

    Dunno ’bout you guys, but the front face reminds me of Saga FL ;p

    Like or Dislike: Thumb up 0 Thumb down 0
  • korean lovers on Aug 21, 2013 at 10:37 pm

    proton only “syok sendiri” making car….all they know is jaguh kampung…..they dont want to invest more to the new model.dont want to hire world class designer car….which is kia do it….only hire on local workers…i think if proton running with local management it will not compete with others players.they have lotus but they do not use 100% advantage on it….shamlesss….

    Like or Dislike: Thumb up 2 Thumb down 2
 

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