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The Former Mercedes-Benz Factory in SP Has Been Closed Since December 2020. Less Than a Month Ago, Great Wall Decided to Buy the Factory to Turn It into an Export Base for Imported Cars.
Mercedes-Benz confirmed this week that it has sold its factory located in Iracemápolis, SP, which had been closed since December 2020. The buyer was Chinese manufacturer Great Wall Motor. All indications suggest that Great Wall’s launch in SP will occur in the second half of 2022; moreover, the manufacturer intends to start by exporting imported cars, leaving the Brazilian market for the following years.
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Great Wall’s Main Target for Export in Brazil is the SUV Lineup
Great Wall is still deciding which imported car models will be part of its export catalog from the SP factory, due to the fact that new models are constantly being introduced in China. However, the Chinese company primarily targets the variety of imported cars that fall into the SUV (Sport Utility Vehicle) category and also the current truck lineups.
Buying the decommissioned Mercedes-Benz factory was a key move to expand its brand not only in SP but throughout Brazil and the world. The Chinese manufacturer currently has 5 sub-brands, including Haval, which focuses on producing SUVs, and Ora, which produces electric cars.
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In addition to these, there are also GWM Pickup, Wey, and Tank, which recently entered the market with distinctive SUV models. It is likely that GWM Pickup and Haval will arrive in Brazil first, and in the not-too-distant future, Ora will also be established here. This same strategy is being applied by the company in expanding its brand in the markets of Russia, South Africa, and Chile.
Chinese Manufacturer’s Investments in Brazil Increase
Great Wall Motor’s global expansion plan includes Brazil. In several interviews and statements, the company makes its commercialization plans clear, and the current goal is to sell around 4 million vehicles per year starting in 2025.
In 2020, even with the grim scenario of a global pandemic, sales were excellent, around 1.1 million units sold. The factory in SP will have the capacity to produce about 100 thousand vehicles per year and will export various imported cars, in addition to those that will be manufactured here.
The former Mercedes-Benz factory will be a crucial base for the export market. Great Wall reported that it will invest around R$ 4 billion over the next 5 years to fully operate the factory in Brazil.
Jobs and Income for the Iracemápolis/SP Region
It is estimated that around 2 thousand jobs will be generated for the Iracemápolis region and nearby areas in SP. Various adaptations and renovations will be made to the factory in SP so that it can soon start producing models from Great Wall Motor, but it has reported that it intends to preserve part of the model used by Mercedes-Benz at the factory.
