Chery to produce small cars in Brazil
Chery Automobile Co. has signed an agreement with the local government of Sao Paulo to build a $400 million assembly plant in that region of Brazil.
Under the agreement, the plant will launch production in 2013 with an initial output of 50,000 vehicles a year, said the state-owned Chinese automaker in a statement.
Chery eventually will expand its annual production capacity to 150,000 vehicles a year.
Initially the plant will produce the Chery S12 and A13 small cars.
At present, Chery sells its Tiggo SUV as well as the S12 and A3 small cars through more than 50 franchised sales outlets in Brazil. These vehicles are shipped from Chery's assembly plant in Uruguay.
To date, Chery is the only Chinese auto manufacturer that has announced a plan to build vehicles in Brazil. However, Great Wall is considering a possible joint-venture assembly plant in that country.
