Uruguay-built Chery vehicles to roll into Brazil

Shanghai, June 6 (Gasgoo.com) Brazil and Uruguay will sign a new deal on auto trades, which will make it possible for Chinese carmaker Chery Auto's vehicles built or assembled in Uruguay to be sold in the Brazilian market, Brazilian media reported earlier this week.

The two South American countries are in talks to sign a new vehicle agreement because the existing one will expire on June 30. Brazil is expected to ease its restrictions on vehicle imports from Uruguay, and vehicles produced or assembled in Uruguay then can comply with Brazil's new regulations and will be allowed for sale in Brazil. In the second half of 2008, Chery Auto will get access to the Brazilian auto market, and the first batch of 1,500 Chery Tiggo SUVs made in Uruguay will go on sale in Brazil later this year.

China's Chery Auto, Argentina SOCMA Group and Oferol of Uruguay set up their joint venture Chery Socma in Uruguay last year. The assembly plant has been in production since March 2008, with an annual production capacity of 20,000 units.

The current model under production is the Tiggo van which has already sold over a hundred units in Montevideo. Chery-Socma is planning to manufacture three versions of the Tiggo, including an all terrain and a new model, beginning 2009.