Mercedes-Benz back to produce cars in Brazil in 2015

A decade and a half after seeing frustrated his first attempt to produce cars in Brazil, Mercedes-Benz is ready to build a new auto plant in the country. The automaker's President in Brazil, Philipp Schiemer, confirmed yesterday that the venture will be ready in 2015. The location has not yet been set. The company is still in doubt between the States of São Paulo and Santa Catarina. But Schiemer has revealed what will be the first model to be produced in the country: the GLA, a jeep about to be released in Europe. In a second phase, the company will produce cars sedans line the so-called C series, the most sold in the Brazilian market.
Schiemer kept the details of the negotiations that have been conducted by a team which brings together representatives of the company of Brazil and Germany. However, it was his boss, the President of Mercedes-Benz, Dieter Zetsche, the first confirmed the news in an interview with the Frankfurt newspaper "Stuttgartten Zeitung".
Last night, during a party that anticipated presentation of the products that will be displayed at the Frankfurt Motor Show, Zetsche jumped at the chance to talk to the world press less than two weeks away from the Germany legislative election, to criticize politicians. "At first glance, salons of automobiles and elections have little in common: in contrast to politicians, you have a chance to test the candidate before voting". And then, during the presentation of new hybrid and electric models, Zetsche, in his speech, also said: "We [vehicle manufacturers] have done things that politicians really don't like to do. We have brought with us promises we made in the past ".
At the same party, the President of the company in Brazil, Philipp Schiemer said that the choice of future Brazilian factory site will happen "in the next few weeks". According to him, logistical issues and manpower training are the ones that weigh in the decision. He did not reveal, however, the size of the investment.
If you choose to Santa Catarina, Mercedes will be neighbor to its competitor BMW, which is in full construction of a line in the Northern catarinense Araquari. In the case of Mercedes, São Paulo, however, has important weight in the decision, since the automaker has a historic relationship with the State, which produces trucks and buses for 60 years. Two cities in the State of São Paulo are evaluated.
The automaker is studying places near the State capital, which includes the region where Hyundai's factories are located in Piracicaba, and Honda, Sumaré. In Santa Catarina, Joinville region is the main candidate.
Second Schiemer, the new plant will have capacity of 30 thousand vehicles per year and initially will devote the entire production to the domestic market. The number matches the predictions of BMW for his factory and also reflects the expectation of the two automakers that the luxury car market is expected to grow.
The three brands that concentrate sales in this segment-Mercedes Audi and BMW-sell today around 50 thousand units per year. Schiemer doesn't seem worried about the future of Brazil's economy. "Our automobile factory is an investment for the long term," he says.
The calculation of production capacity of the future factory also considers tax advantages. The tax benefits provided for in the new automotive system take into account the amount of parts purchased on the local market. But for low-scale lines with a capacity of less than 35 thousand cars per year, this policy grants local content levels more comfortable, since the company comply with minimum investments stipulated by the Government.
With the expectation that Audi also return to produce automobiles in the country, Brazil will recover soon, its industrial park called "premium" category. But both Audi and Mercedes have been through experiences frustrated. Audi stopped producing the A3 for failing to bring to Brazil the new generations of the German model. Even so, the factory where the A3 was produced in São José dos Pinhais (PR), continued to operate because it was shared with the Volkswagen.
The history of the factory Mercedes was more complicated and controversial. The unsuccessful project of Juiz de Fora (MG) dragged on for years. Workers spent much of the time apart. Finally, the company chose to adapt the plant to produce trucks. No wonder, therefore, that the announcement of the future factory is now surrounded by care. The Germans don't want to err twice.