Chery Announces construction of Chinese engine plant in Brazil

The Chinese Chery, which already is building a car factory in Brazil, announced yesterday that it will invest in a unit. The information was given by the Vice President of Brazil, Luis Curi Chery. "The total investment and where will be the factory will still be defined," he said. "But this will be done the box to get in touch with the factory operation."
Although not yet defined, the destination of the new plant will be, probably, Jacareí, State of São Paulo, according to the own Curi. In the city of São Paulo, the company builds its vehicles, with investments of US $ 400 million and a production capacity of 150 thousand units per year. "Still depend on negotiations and incentives, but most likely will be there," said Curi, at the IV Forum of the automobile industry, held in São Paulo.
The Executive considered "frivolous" announce the investment values of the engine plant. Signaled, however, that you can negotiate incentives with the Government of Minas Gerais and Rio de Janeiro States that are within 150 km radius of the future Chery factory, to receive the engine unit. The distance is considered economically viable for the engine supply of cars, which should go into operation until the beginning of 2014.
Curi also confirmed that 1.1 and 1.5 engines will be made on the drive, which will equip the compact Celer, released last week and that will be the first to be produced in the country by Chery. The other vehicle will be a subcompact, but the model has not yet been set. The engines will be exported to the automaker's unit in Argentina and Uruguay. "The factory will unburden the engine production unit of China," he said.
Curi said the engine plant will precede the construction of a technology center of Chery in Brazil, which can be made even from an investment in partnership with a scientific institution. "But the priority now is the engine plant," he said.
IPI. The Vice President of Chery also celebrated the extension, until December 31, the differentiated rate of the tax on industrialized products (IPI) on vehicles. "The first quarter fell short of the predicted, with the consumer, and the measure will benefit the industry," said the Executive.
According to Curi, as an investor and future producer, Chery will have a quota of 50 thousand vehicles per year with the IPI rate equal to that of national models, i.e. 30 lower IPI points in relation to imported vehicles. "It is more than enough to meet sales forecasts of 30 thousand units to 2013," he said.