Chinese automaker Geely will build a new plant in Brazil to produce vehicles locally. The plant will be a 60:40 joint-venture with Grupo Gandini, the current importer of Geely cars to Brazil, stated local media 163.com. The plant will be announced in January 2014. Meanwhile, Grupo Gandini will sell imported Geely vehicles in Brazil till local production commences. The vehicles will be exported from China as knocked down kits and assembled at a plant in Uruguay.
Significance: The reports in local media stem from comments made by Jose Luiz Gandini, chairman of the Gandini group. The JV is expected to help Geely avoid the high import tariffs in Brazil. In 2012, Geely was rumoured to have plans to open a plant in Santa Catarina in Brazil in 2015. Arch rival Chery has begun construction of a USD400-million plant in Brazil, scheduled to begin production in 2014.
