Great Wall Motors Seeks To Buy And Reactivate Mercedes-Benz Plant In SP

Considering That the Mercedes-Benz Factory in SP Is Perfect for Its Future Operations, Great Wall Motors Wants to Buy the Plant and Boost Its Activities in Brazil

The Mercedes-Benz factory in Iracemápolis (SP) remains closed and is waiting for a buyer. However, this wait may soon come to an end, as Great Wall Motors wants to be the future owner of the plant.

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Get to Know the Mercedes-Benz Factory in SP

With an investment reaching R$ 600 million in the São Paulo factory, Mercedes-Benz produced two luxury models between 2016 and 2020, closing previous generations and productions of the crossover and sedan, which are now only being imported.

With a production capacity of approximately 20,000 cars per year, the factory in SP is equipped with advanced technology in its production process and meets the production requirements of Great Wall Motors. If it acquires the Mercedes-Benz plant, Great Wall Motors will gain a significant advantage in the production of pickups, SUVs, and electric cars, as there is already a qualified workforce in Iracemápolis (SP) without having to invest in courses or training, as well as space to expand the factory, given that the total area of the plant is approximately 4,000 square meters.

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Another advantage to highlight is that the Mercedes-Benz factory is located in the center of the state of SP, close to the country’s main vehicle hub, allowing for export through the ports of Guarujá and Santos, as well as the import of parts and components manufactured in China through the same terminals.

The Expansion of Great Wall Motors

Continuously expanding, Great Wall Motors has already purchased factories from the renowned General Motors in Thailand and India, seeking the valuable Southeast Asian market and, through India, the great possibility of reaching the African and European markets.

Additionally, Great Wall Motors aims to establish a solid base in South America through Brazil, where it has hired former Toyota executive Anderson Suzuki as the Product Planning Director for the region. The company is already present in some Latin markets and intends to focus on the most interesting segments, despite electric cars being a significant future potential.

Great Wall Motors Faces Pressure from Other Manufacturers in China

In China, where the brand is a leader in SUVs and pickups, Great Wall has been facing significant pressure from manufacturers like VW and GM, finding itself forced to explore external markets with greater energy.

In Brazil, the manufacturer tried to establish itself for the first time in 2008, when its entry into the country was officially announced, but the operation failed. In 2016, it explored SP and even had a site in the state where it planned to establish a factory, but again the effort failed.