Wednesday, November 27, 2013

Land Rover factory project arrives in final phase

The factory project in Brazil of Jaguar Land Rover has reached the final stretch with two States in dispute-São Paulo and Rio de Janeiro, but with the South Fluminense region as a favorite to lead the venture. The British automaker also negotiated with the Governments of Santa Catarina and Espírito Santo, but, in the end, returned its focus to regions with automotive production hubs consolidated, where you can take advantage of the already established supply chain.
In the State of São Paulo, there was interest from the British in taking the investment to near Sorocaba, where Toyota produces the compact Etios for over a year, or for the region of Campinas, a few kilometers from the Honda, installed in Sumaré. However, negotiations with Sao Paulo have cooled. A source who has followed the dealings by the side of the São Paulo State Government says Land Rover executives no longer discuss "long" investment in the State and that will be a surprise if Sao Paulo lead the factory.
The project, then walks to the South of Rio de Janeiro, where the factories are already installed Peugeot Citroën, of MAN, which produces commercial vehicles from Volkswagen, and Nissan-the latter under construction, but with inauguration planned for next year in the city of Resende. Sought, the Economic Development secretariat of Rio confirmed that the State is in "Brawl" with Sao Paulo, but that has not yet received a decision on investment by the automaker. In the case of Rio de Janeiro, as the options evaluated in Sao Paulo, the biggest advantage to the Land Rover is to benefit the automotive regions, vocation given the development of manpower and suppliers already done by manufacturers who settled there.
Yesterday, by participating in seminar held by the value on road safety, the Manager of strategic planning and product price of Jaguar Land Rover, Carlos Szeles, said that studies of the carmaker to build a factory in Brazil are almost completed. During the event, the Executive stressed that a decision on the issue should come out until next month, repeating what has been said by the brand's high command in the region. "Before Christmas we have a resolution, positive or not, about the factory in Brazil," said Szeles during their participation in the seminar. Later, wanted for the value, it reported that topics such as state incentives and funding for the project has yet to be discussed, but should be set "in the coming days".
The Land Rover, controlled by the Indian group Tata since 2008, evaluates about two years to produce SUVs in Brazil but had to re-evaluate the project before changes in Brazilian automotive policy which established requirements for investment in innovation and nationalization of industrial activities, closing the door to automakers who wished to enter the country only with the Assembly of kits of parts sent from abroadthe system known as CKD.
Before government restrictions to imports of cars under the new automotive system, a number of automakers announced investments in local production of vehicles, which includes the premium segment brands like Land Rover. In addition to the UK brand, BMW, Audi and Mercedes-Benz have confirmed their investments in manufacturing cars in Brazil.
Second Szeles, more than meet the regulatory demands, the Land Rover finds himself forced to invest in new production lines because their factories in the United Kingdom have operated at the limit of capacity. The brand is registering its best sales year in Brazil, with 9 thousand cars between January and October, up 30.2%.
Valor Econômico - 22/11/2013
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