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A Chinese automaker close to Volkswagen may be about to install a new factory in São Paulo, generating jobs in the state.
The Brazilian automotive industry is about to receive significant new investment. Last Friday, (23/08), during an event held at Volkswagen, Samuel Kinoshita, Secretary of Finance and Planning, revealed that a Chinese automaker, linked to Volkswagen, is in advanced negotiations to install a factory in the state of São Paulo.
Volkswagen investments in São Paulo
At the event, Volkswagen confirmed a investment of R$13 billion of the R$16 billion promised until 2028, to be invested in its three factories located in São Paulo.
The units involved are the Anchieta, São Bernardo do Campo, Taubaté and São Carlos factories.
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This funding will be used mainly for the production of new flex hybrid engines, highlighting the German automaker's commitment to the development of more efficient and sustainable technologies.
The announcement of Volkswagen's investment also signals a strengthening of the company's presence in the state of São Paulo, with a focus on innovation and increasing production capacity.
The São Carlos factory, for example, will be a key point for the production of new engines, reflecting the strategic importance of the São Paulo facilities for Volkswagen's plans.
Details about the Chinese automaker and the new factory
Although the name of the Chinese automaker was not disclosed, the announcement sparked speculation about which company might be involved.
The Chinese automaker, which has a connection with Volkswagen, is in an advanced stage of negotiations with the São Paulo government to establish its own plant in Brazil.
Currently, three main Chinese automakers are speculated to be potential partners for Volkswagen in this project: SAIC Motor, JAC Motors and Xpeng.
SAIC Motor, one of the largest Chinese manufacturers, had shown interest in establishing itself in Brazil, but with a focus on other states such as Minas Gerais and Rio Grande do Sul.
This makes it less likely that you will choose to install the new factory in Sao Paulo.
JAC Motors, another Chinese automaker, was also considered a potential candidate, but its presence in the Brazilian market is limited and the company has not indicated plans for significant expansion into the state of São Paulo.
Possible partnership with Xpeng
Xpeng appears as the most likely candidate to partner with Volkswagen and install the new factory in Sao Paulo.
Xpeng, which entered Volkswagen's radar in 2023 with the purchase of a 4,99% stake, is an innovative automaker known for its technological initiatives, including the development of flying cars.
Xpeng is already in the process of developing a joint platform with Volkswagen, with the aim of launching an SUV in 2026.
The fact that Xpeng is involved in advanced and innovative projects, in addition to its recent partnership with Volkswagen, makes it a strong candidate for this new investment.
The São Paulo government revealed that negotiations with the Chinese automaker could bring new and important developments.
The installation of an Xpeng factory in São Paulo would not only reinforce the presence of the Chinese brand in Brazil, but would also contribute to the generation of jobs and the development of the automotive industry in the state.
Impacts expected by the Chinese automaker's factory
The arrival of a new factory of a Chinese automaker in São Paulo has the potential to bring a series of economic and industrial benefits to the region.
In addition to the direct impact on job creation and local economic movement, the new plant can boost technological innovation in the Brazilian automotive sector and contribute to the advancement of the production of more sustainable vehicles.
Furthermore, the installation of an Xpeng factory, or another Chinese automaker, could strengthen cooperation between Brazil and China in the automotive sector, expanding market opportunities and creating a more competitive and diversified environment.
