Approval of incentives by Brazil’s federal government, in conjunction with the north east regional Pernambuco government, resulted in Fiat’s recent investment of US$1.8bn there. Now two Brazilian-based groups are eyeing a slice of the incentive pie, just-auto has learned.
Group CAOA imports Hyundais and Subarus and currently assembles Hyundai’s previous generation Tucson SUV and the HR light truck in the mid-west region, which itself has already offered incentives to automakers to establish factories.
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Eyeing this scenario, CAOA owner Carlos A O Andrade is checking out the possibility of government incentives to establish a plant in the north east for China’s BYD, which he plans to represent in Brazil.
There are also ongoing rumours about entrepreneur Sergio Habib being interested in talks with north east state governments about help with convincing the federal administration to reopen an incentives ‘window’ available only from last 26 November to 29 December.
Habib is the official importer of Chinese JAC vehicles, with operations scheduled to begin next March.
The north east is the country’s poorest region measured by per capita income but its economy has grown at above the national average rate in the last few years. The Ford plant built in Bahia state in 2001 was just one recent boost for the area.
Ford, according to the O Estado de S Paulo newspaper, is mulling commiting to a new investment cycle of $1.7bn in Bahia from 2015 but how this would be spent is still unknown.
It would complement a current application to invest $2.6bn in 2011-2014 in the states of São Paulo and Bahia.
Fiat likely to launch low cost car at new plant
