The former Mercedes-Benz factory in SP had been closed since December 2020. Less than a month ago, Great Wall decided to buy the factory to transform it into an export base for imported cars.
Mercedes-Benz confirmed this week that it sold its factory located in Iracemápolis, SP, which had been closed since December 2020. The buyer was Chinese manufacturer Great Wall Motor. Everything indicates that the launch of Great Wall in SP will take place in the second half of 2022, in addition, the manufacturer intends to start exporting imported cars, leaving the Brazilian market for the following years.
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The lineage of SUVs is Great Wall's main target for export in Brazil
Great Wall is still deciding which models of imported cars will be part of its export catalog from the SP factory, due to the fact that new models are presented in China constantly. But the Chinese main target is the variety of imported cars that are in the SUV (Sport Utility Vehicle) classification and also in the current lines of pickup trucks.
Buying the deactivated Mercedes-Benz factory was a key part of expanding its brand not only in SP, but in Brazil and abroad. The Chinese manufacturer currently has 5 sub-brands, including Haval, which is focused on the production of SUVs and Ora, a producer of electric cars.
In addition to these, there is also GWM Pickup, Wey and Tank, which recently hit the market, bringing different models of SUVs. It is likely that the GWM Pickup and Haval will arrive in Brazil first, and in the not too distant future, Ora will also be installed here. This same strategy is being applied by the company, in the brand expansion methods in the markets of Russia, South Africa and Chile.
Investments by the Chinese manufacturer in Brazil increase
Great Wall Motor's worldwide expansion plan includes Brazil. In some interviews and notes, the company makes its sales plans clear and the current target is to sell around 4 million vehicles per year, but starting in 2025.
In 2020, even with the obscure scenario of a worldwide pandemic, sales were excellent, around 1,1 million units sold. The factory in SP will have the capacity to produce around 100 vehicles per year and will export several imported cars, in addition to those that will be manufactured here.
The former Mercedes-Benz factory will be an extremely important base for the export market. Great Wall informed that it will invest around BRL 4 billion over the next 5 years, in favor of the full operation of the factory in Brazil.
Employment and income for the region of Iracemápolis/SP
It is estimated that around 2 jobs will be generated for the region of Iracemápolis and areas close to SP. Several adaptations and reforms will be carried out at the factory in SP, so that production of Great Wall Motor models can soon start, but it reported that it intends to preserve part of the model used at the factory by Mercedes-Benz.
