Chery to still build factory in Brazil
Updated: 2011-10-18 15:53
Despite the Brazilian government's decision to raise taxes on imported vehicles, Chery announced on Oct 9 that it will not cancel its plans to open a new factory in Jacareí, São Paulo, sources reported.
Chery had held a lavish ceremony for the new factory not long before the introduction of the new laws, which would see taxes for imports rising almost 30 percent. According to a statement from the manufacturer, Chery's decision is based on intensive market research. The law, aimed at protecting the local industry, also requires manufacturers to increase the percentage of their production done within the country, which Chery says that it will adhere to.
The legislation is mainly directed towards vehicles from China and Korea. It is of little influence to Western manufacturers, who have been selling in the country for years, and will not harm imports from other Mercosur countries, such as Argentina.