Chinese Automaker GWM Postpones Opening of Factory in Brazil

 

Chinese automaker GWM postponed the opening of its factory in the Brazilian state of São Paulo, initially scheduled for May, for the second half of this year, citing recent measures from the federal government.

According to GWM, the postponement was due to the gradual return of the Import Tax for electrified and hybrid vehicles, which began in January of this year, and the announcement of the automotive program Mover, which aims to encourage local production of vehicles with lower emissions of pollutants.

Brazil’s GWM told Reuters that it needed to “adjust” the opening date. Last year, after launching its first fully electric car in Brazil, the Ora 03, the car manufacturer announced investments of Rs. 10 billion (USD 2 billion) in the country, of which Rs. 6 billion (USD 600 million) until 2025.

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The company acquired the Mercedes-Benz car factory in Iracemápolis in 2021 and hoped to start producing this year an electric pickup not yet launched by the brand.

“We have continued the production of an urban SUV of the Haval line, of greater volume than the pickup, which will be the next launch,” GWM added.

“Everything remains the same. Values and products. We just changed the order because of the government changes: first the SUV, then the pickup.”

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The Iracemápolis plant will have a production capacity of 100 thousand units per year at the end of the modernization process of the plant, according to the car manufacturer’s data, and is expected to generate about 2 thousand jobs after it is operating in full capacity.

 

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