Great Wall Motor's Total Investment in Brazil in 2014

Reuters reported that China Great Wall Motor will build a new factory in Brazil in 2014, which will be postponed. The total investment of the new plant project will be close to one billion US dollars.

Construction started in 2014 On March 12th, the Great Wall’s partner in Latin America, Latin American Motors (LAM), announced a February decision: Great Wall Motor originally planned to be built by the group for local construction in early 2013. The factory, after LAM research, will delay construction until 2014.

The LAM Group, which is controlled by individual investors in Sao Paulo, Brazil, will be responsible for raising funds and providing a range of resources for Great Wall Motor’s Brazilian factory, while Great Wall Motor will mainly supply technology for the factories.

Leandro Machado, an analyst at the group, told Reuters: “We decided to continue the construction of the plant, but the company decided to postpone the start-up until mid-2014.”

It is reported that the factory's initial capacity target is 50,000 vehicles/year and it is expected to double to 100,000 vehicles/year. Covering the costs of building a factory and establishing a dealership network, the project's total investment is about 1.9 billion Brazilian reals, or about US$1 billion.

Machado revealed that the Great Wall Brazil plant will initially produce three new cars, including a pickup truck and two SUVs. One of the two SUVs is a miniaturized model.

The site has not yet been finalized. The LAM representative also disclosed that the Great Wall Brazil factory has not yet set a factory address. Last year, Great Wall Automotive executives visited several cities in Brazil, including Ribeiro Preto and Guarulhos in São Paulo, Joinville in Esprito Santo and Salvador in Bahia.

In September 2012, the Great Wall delegation went to Ribeiro Preto to inspect and said that it intends to arrange the placement of supporting component manufacturers to build an industrial chain in the region. The sales volume of Great Wall Motor reached a record high of 620,000 last year, and its sales target for this year is 700,000 units, including 140,000 export sales. The Great Wall places the export market in an important position. The establishment of a factory in Brazil is one of the important steps to accelerate overseas deployment.

If the Great Wall Brazil factory project is finalized, the performance of Chinese car companies in the Brazilian market will be further strengthened. At present, Chery and JAC have started to build factories in Brazil. Last year, at the Sao Paulo auto show in Brazil, other Chinese auto makers also stated that they are studying the feasibility of putting into operation in Brazil, including Chang'an, Haima, Hafei, Jinbei, Shuanghuan, Jiangling Landwind, Changhe and Yongyuan Automobile.

The sales volume of Great Wall Motor reached a record high of 620,000 last year, and its sales target for this year is 700,000 units, including 140,000 export sales. The Great Wall places the export market in an important position. The establishment of a factory in Brazil is one of the important steps to accelerate overseas deployment.

If the Great Wall Brazil factory project is finalized, the performance of Chinese car companies in the Brazilian market will be further strengthened. At present, Chery and JAC have started to build factories in Brazil. Last year, at the Sao Paulo auto show in Brazil, other Chinese auto makers also stated that they are studying the feasibility of putting into operation in Brazil, including Chang'an, Haima, Hafei, Jinbei, Shuanghuan, Jiangling Landwind, Changhe and Yongyuan Automobile.