Great Wall will start producing cars and trucks at its new factory in Bulgaria from the end of this month, gaining its first foothold in the European market.
Litex Motors, Great Wall’s partner in the project, said the plant in Bahovitsa, will initially employ 150 people, capable of making 4,000 cars a year from SKD kits imported from China.
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Litex marketing director Ivo Dekov told the Agence France Presse news agency that production will increase as the European markets develop.
He added: “Depending on demand, we can produce an annual 50,000 vehicles with 2,000 workers on two shifts, or even 71-72,000 on three shifts.”
Dekov said that Bulgaria’s qualified and competitive workforce as well as its low taxes made the EU newcomer an ideal starting base to enter the region for Great Wall, one of the biggest SUV makers in China.
Litex signed a deal for a joint venture with Great Wall in 2009 that would allow the Chinese group to export tax-free to the common EU market. The plant, which has been test producing since mid-November, is ready to start sales immediately of two locally-assembled models – the Voleex C10 city car and the Steed 5 pick-up, with prices ranging between EUR8,200-EUR12,800 (US$10,700-US$16,700).
Dekov said that over 200 imported vehicles were sold in Bulgaria between mid-October and end-2011.
“On the whole, interest in the brand, the plant and the vehicles has been huge and customers’ reaction has been positive.”
He added that the cars’ affordability, a five-year guarantee and equipment included in the starting price will help Litex compete well in a market where the ratio of new-to-used car sales is just 1:10 compared to Europe’s 1:3.
Great Wall has 17 dealerships in Bulgaria, set to grow to 20 this year, and Dekov said that three more models will be added to the plant’s production range, including the Hover H6 SUV.
“Great Wall Motor’s overall plans for Europe are to offer a total 8-10 models by 2016,” he added.
Great Wall sells cars in 120 countries and is the only Chinese automaker to have obtained Whole Vehicle Type Approval to market several of its models in the EU.
In the long run, Litex hopes to start using local parts here rather than only assembling China-imported kits, and talks have already started with possible subcontractors, said Dekov.
Litex plans to add welding and painting ability to the plant later.
