After confirming earlier it would invest in both a manufacturing plant and technical centre in Brazil, Chery has detailed its plans.
Initial investment is US$130m to produce 50,000 cars annually as of 2013. But expenditure may rise to $400m, increasing capacity to 150,000.
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The chosen location is Jacareí, 50 miles (80km) from downtown São Paulo City. The Face small hatchback and and large compact Fulwin2 will be the first Brazilian-built models.
Chery is represented here by a group that also operates in the food sector of inland São Paulo state. Yet the plant will be built with Chinese capital and directly run by Asian staff who in future will take over the whole operation.
Chery currently imports the Tiggo, the Cielo (A3) and the Face. These are on display at the São Paulo auto show (27 October to 7 November), alongside the Fulwin2, the S180 crossover, QQ subcompact and the S18 compact.
Another eight Chinese brands were also at the show, represented by local importers. No Chinese automaker was represented at the recent Paris show.
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By GlobalDataOnn the second São Paulo show press day, Suzuki announced local production of its subcompact Jimny SUV . There were no further details except for the planned production of 3,000 units per year as of 2012.
“In the next weeks the amount of investment and the plant location will be revealed”, Suzuki of Brazil president Luis Rosenfeld told just-auto.
The Souza Ramos Group, which imports and manufactures Mitsubishi pickups and SUVs in Catalão, state of Goiás, in the country’s midwest (440 miles from São Paulo City), has formed a separate company for the Suzuki brand only.
Therefore, it would not be a surprise if another city in the state of Goiás itself was chosen.
Suzuki had a subsidiary here importing vehicles from 1992 till 2003. But it kept producing the previous generation Grand Vitara at GM’s plant in Rosário, Argentina. The compact SUV was marketed here in Brazil as the Chevrolet Tracker until 2008.
