Chery Auto to build $200m factory in Venezuela | CarNewsChina.com ...

Published on June 1, 2011 by Tycho

Chery Automobile Co determination smash new ground in Latin America at what time its $200 compensation factory in Venezuela starts use vehicles for the area afterward petroleum year, a go,shift seen as additional enhancing foothold in the overseas marketplace of the automaker, a top corporation executive told China Daily.

Chery had signed a cooperative accord by means of China Development Bank and the Venezuelan administration to set up the new factory, construct determination be the second-largest so as to Chery has in Latin America, ,next its obtainable auto manufacturing ability in Brazil.

Du Weiqiang, vice-president of Chery International, supposed the new auto-making plant determination be use 20,000 cars annually.

œVenezuela is not an unlock market, construct foliage enormous possible for us to tap, if we contain an meeting factory present to sell domestically. And also, Chery has wealthy experiences in Latin American nations, Du said.

The new factory determination be the primary Chinese automotive plant in Venezuela and determination assist Chery " Chinas main auto exporter and main Chinese self-governing automaker " to ramp up its exports.

Since December 2007, Venezuela raised bring in tariffs on autos to 40 proportion as of 35 percent, as a way to fend off imports and protect its own auto industry.

It is predictable so as to 15 worldwide auto-making decide " more frequently supposed not as of the United States, the European Union, Japan and South Korea " contain recognized factories in Venezuela to money in on the possible growth of the emerging economy, whose yearly manufacture ability is 250,000 vehicles at the moment.

But genuine ability is far as of meeting restricted demand, particularly populace who desire to buy budget vehicles. That ,court case a niche chance for Chinese automakers to increase entry eager on the home market.

œThe new factory determination mostly create budget cars. Our aim is the restricted consumers, Du said.

Under the agreement, China Development Bank determination œgrant assist to the Venezuelan administration and Chery determination transfer technology.

Venezuela imports additional supposed 50 proportion of its auto lesser annually. The restricted administration has urged foreign companies, counting Chinese automakers, to transfer technologies to restricted partners.

Venezuela is a main crude oil producer and exporter. Since riches 2009, the nation has customer a gesticulate of financial stimulus packages, counting structure infrastructure and simplifying administrative processes.

Venezuelas monetary system terrified by 1.4 proportion in 2010, but it bounced rear and greater supposed before by 4.5 proportion throughout the primary quarter of petroleum year.

Chery has 16 manufacturing bases abroad, counting two in Latin America " Brazil and Uruguay. The factory in Brazil, by means of an investment of $400 million, can finally produce 150,000 autos annually.

œLatin America is the the majority excellent drama area for Cherys overseas market, thanks to a stable political situation, fewer deal barriers and a mature use market, Du said.

Since the new worldwide monetary disaster began, Latin America has person's name one of the top inquisitiveness overseas similar to for Chinese automakers, by means of Brazil predictable to overtake Germany as the worlds fourth-largest auto marketplace petroleum year.

In 2010, Chery similar of 23,000 vehicles in Latin America, creation the area the best growing marketplace for the Chinese automaker.

Last year, Chery sold 91,986 vehicles, more frequently supposed not in rising era genuine as Southeast Asia, the Middle East, Latin America and Africa.

The corporation has set a aim to sell 120,000 vehicles in the overseas similar to for 2011.

Via: ChinaDaily.