Chery still interested in building factory in Brazil

Shanghai, August 21 (Gasgoo.com) Chinese carmaker Chery Auto remains interested in setting up a factory in Brazil and is currently carrying out an economic feasibility study, Chery's chief executive for Brazil said in Sao Paulo yesterday, Macauhub reported online.

"A team, made up of Brazilian and Chinese technicians, is analyzing, among other factors, the end cost of the brand's vehicles if they are produced in Brazil (...) however, the final decision is only likely to be taken next year,” said Luís Curi, the company's CEO for Brazil.

"Until then we are going to continue with imports from Uruguay and China to provide for Brazil's commercial needs," he said during the launch of Chery's new SUV model Tiggo.

According to the Chery Brazil CEO, construction of a Brazilian factory would be not only for the local consumption but also for the Chinese auto manufacturer's exports to countries with which Brazil has a free-trade agreement (Mercosur and Mexico).

In April this year, Brazil's Gazeta Mercantil daily reported that Chery Auto was planning to build a $700-million factory in Brazil to tap into the country's growing market. The plant, also to supply the Latin American market, may start production by 2012 if the project goes ahead.

Chery started operating in Brazil with 31 points of sale in 14 states. The company's target is to have 55 stores in 20 states by the end of 2009, with a total of 4,500 vehicles to be sold this year.