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After Acquiring The Mercedes-Benz Unit In São Paulo, Automaker Great Wall Plans To Increase Factory Capacity From 20,000 To 100,000 Vehicles
Mercedes-Benz confirmed that it has finalized the sale of the Iracemápolis factory in the state of São Paulo to the Chinese automaker Great Wall. The agreement had been in the works and became a rumor in the industry last month. The company intends to invest approximately R$ 4 billion over five years to build a business almost from scratch and create more than 2,000 new jobs. See also: Lamborghini Studies Investing R$ 300 Million In A New Factory In Santa Catarina. The Plan Foresees The Creation Of 1,600 Direct And Indirect Jobs
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The New Projects With The Arrival Of The Chinese Automaker In Brazil
The automaker plans to construct a brand that is little known to Brazilians and set up a dealership network, which currently does not exist, to distribute most of the 100,000 cars that the automaker aims to produce someday in the country. Anderson Suzuki, director of products and strategy for Great Wall in South America, stated that they were finalizing the business plan and exploring opportunities and segments where they have the best conditions to compete.
Part of the multi-billion investments planned by Great Wall in Brazil includes the payment – the amount not disclosed by both parties involved – for the factory where Mercedes-Benz produced premium automobiles. The deal, as announced on Wednesday, the 18th, encompasses the entire package: buildings, production equipment, and the 1.2 million square meter lot in Iracemápolis, in the interior of São Paulo.
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Acquisition Of The Mercedes-Benz Factory In The State Of São Paulo
The Mercedes factory acquired by Great Wall was designed to assemble a maximum of 20,000 cars, but the Chinese company’s intention is to raise that capacity to 100,000 vehicles. A portion will be exported to neighboring markets on the continent, but to give an idea of the size of Great Wall’s ambition, this volume would represent more than 4% of the current market for passenger cars and light utility vehicles if it were fully allocated to Brazil. This is something that would place the newcomer close to the current size of brands like Honda and Nissan.
Still awaiting the transfer of the Iracemápolis facilities, which is expected to occur by the end of the year, Great Wall is not currently discussing a start date for production. When the factory is operational again, it is expected to employ around 2,000 new workers.
See Also This News: Automaker General Motors Will Invest R$ 5 Billion And About 600 Jobs Could Be Generated In São Paulo
Automaker General Motors confirmed that it will bring new investments to the factory in São José dos Campos, in São Paulo, in compliance with an agreement signed with the Metalworkers’ Union in 2019. The confirmation was made in a meeting between the automaker and the Union, with the expectation that the investments will be completed in 2023. With the funding, new jobs may be created in the state.
According to General Motors, there are expectations for increased production and new hires during this period. This year, 400 workers have already been hired, with the possibility of reaching 600 jobs. In the current scenario, where factories are being closed in the region, in São Paulo, the Union views the confirmation of investments by General Motors as positive news.
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