Chery holds opening ceremony for new Brazilian factory

Gasgoo.com (Shanghai July 20) - Chery held the christening ceremony for its new Brazilian factory in Jacareí, São Paulo yesterday, Gasgoo.com (Chinese) reported.

The event was attended by Mayor of Jacareí Hamilton Ribeiro Mota, Governor of São Paulo Geraldo Alckmin (pictured above), Chinese Ambassador to Brazil Qiu Xiaoqi, as well as Board Chairman and President of Chery Yin Tongyue (pictured below).

Chery will be investing $400 million over two phases (with first phase investment set at $140m) to complete the new 1 million square meter factory. By the end of the first phase, production capability will reach 50,000 vehicles per year, while annual production capability after completion will total 150,000 vehicles. The site is anticipated to begin operation in September of 2013, with the Chery A1 and A13 compact being the first vehicles to be manufactured.

Following the expansion of Brazil's economy in the past few years, the country's automotive industry has experienced rapid growth. Last year total sales in the country reach 3.3 million vehicles, placing ahead of Germany as the world's fourth largest market. The southern city of Jacareí in turn is one of the country's most important regional automobile markets, and plays a major part in the industry's supply chain. The local authorities also give preferential treatment to factories opening in the area.

Since its entry into the Brazilian market in 2009, Chery has received high praise, with its sales so far this year exceeding 18,000, over triple the amount from the first half of 2010. The manufacturer has established 80 dealers in the country and is looking to expand its sales network.