Chery factory starts production in the last quarter

Chery met yesterday press, authorities, dealers and industry entrepreneurs to celebrate the inauguration of the first factory of a Chinese automaker in Brazil. The commercial-scale production, however, is only expected to begin between November and December.
Until then, the line will assemble only a few dozen cars that will be used in shooting tests, in order to ensure vehicles manufactured by the brand in the country are really prepared for the often harsh conditions of the highways.
Who visited yesterday the new plant of Chery in Jacareí, in São Paulo State, saw a mounting industry ready, but without a vehicle even on line or any workman working-although the company has already hired 300 workers, a third of them being professionals dismissed by GM in nearby Sao Jose dos Campos.
The welding line also is ready, but the spray booth has not yet been fully completed. The operation, still in preproduction, scheme will only start in September, as reported to Chery.
First, the automaker will build a new generation of compact model Celer. Already the subcompact QQ added to the line in the second quarter of next year.
Along with the inauguration of the factory, the company announced plans to open 33 dealerships by the end of the year, reiterated targets to increase the use of domestic parts in automobiles that will be assembled in Brazil and reported that will start advertising campaign, an attempt to break the resistance of many Brazilian consumers the Chinese cars.
The plant, with initial capacity of 50 thousand vehicles per year, comes at a low point in the consumption of cars in Brazil. Executives of the group, however, highlighting the growth opportunities offered by the country in the long run, as well as confidence in the market rally.
"This crisis is fleeting. We are confident that the market will reach 5 million a year. We don't know when, but this negative phase will pass, "he said in a news conference the journalists Zhou Expanded, President of Chery International and main responsible for the expansion of the automaker's business outside of China.
Asked about the reasons that led the Chery to invest in a market that has been losing force, he presented the potential consumer of a population of 200 million people, the rapid growth of the economy in recent years and the advance sales of vehicles that put Brazil among the four largest automotive markets in the world.
The mark drew as goal 3% of the Brazilian market within four years, when, the factory has reached an installed capacity of 150 thousand cars per year. The optimism, said expanded ampara on results already achieved in the country: in 2009, the year of his arrival, Chery sold more than 3 million cars per month.
From 2012, the volumes have fallen sharply with the surcharge to imports from new automotive policy. Already this year, the brand accounts for only 0.3% of the total of passenger cars and light duty utilities consumed by Brazilians.
Despite the negative moment of automakers, Luis Curi, Vice-President responsible for Chery in Brazil, recalled the measures launched by the Government to irrigate the credit market and the relatively low rates of motorization in the country to justify the positive Outlook on the future of the sector. In addition, said that Chery will dispute the most popular band of the market, formed by models of up to r $ 40 thousand, where are concentrated around 60% of sales.
In the event that marked the opening of the factory, also didn't escape the discussions of higher production costs that the company will have to face in Brazil in relation to its reality in China. Chery's directors hope to compensate for this difference with the lower costs of logistics, given the shortening of distances with the consumer market, and eliminating the import tax of 35% in two models that will be produced in the unit.
If that seems to be insufficient to reduce the prices of cars, Curi said that, at least, the brand will be able to maintain the values as they are today. Even imported from China, the QQ, sold for $ 24,000, is today the country's cheapest car.
Of the 50, 000 provided for in the first year of the factory, Chery plans to raise the capacity of the line for 150 thousand cars annually until 2018. Produce on site the new generation SUV Tiggo is also in the plans.
The Jacareí unit, the first of the automaker outside of China, occupies 400 thousand m2 of a plot of 1 million m2. Should generate more than 3 000 jobs in the region. In total, $ 400 million were disbursed in the venture. Another $ 130 million were intended for engine plant erected close the Assembly line-within the goal of achieving 70% of nationalization index in two years.
The Vice-President of the Republic, Michel Temer, and Governor of São Paulo, Geraldo Alckmin, as well as the Ministers of development, Mauro Borges, and labor, Manoel Dias, accompanied yesterday the inauguration ceremony of the factory of Chery in Jacareí.