GWM Sets May 2025 For Brazilian Factory Launch, Embracing Local Production
Date
10/15/2024 5:00:11 AM
(MENAFN- The Rio Times) Great Wall Motor (GWM), the Chinese automaker, has announced May 2025 as the inauguration date for its Brazilian factory. The company has made significant changes to its initial plans, opting for a piece-by-piece assembly process instead of using pre-assembled component kits from China.
This strategic shift aims to accelerate the nationalization process and secure export permissions more quickly. The factory, located in Iracemápolis, about 150 kilometers from São Paulo, was purchased from Mercedes-Benz in mid-2021.
GWM has already begun hiring its first employees. The initial recruitment phase will bring on board 100 people, with 30 joining the administrative office in São Paulo and 70 working at the factory.
Ricardo Bastos, GWM Brazil's director of institutional affairs, explained that some new hires previously worked for Mercedes, though this isn't a selection criterion. These employees will take on leadership roles in production processes, assembly lines, and training.
The company plans to employ 700 people once the factory becomes operational. GWM's decision to abandon the Complete Knock Down (CKD) assembly process was influenced by two main factors.
First, the factory inherited an excellent paint booth from Mercedes-Benz. Second, and more importantly, the company wants to take advantage of the Mover (Green Mobility and Innovation) program.
Mover offers tax incentives to automotive companies based on factors such as the level of vehicle nationalization, pollutant emissions, and investments in research and development. GWM aims to achieve a 60% nationalization level by 2028 to facilitate exports.
GWM Sets May 2025 for Brazilian Factory Launch, Embracing Local Production
The factory's location in Iracemápolis provides access to an existing network of auto parts suppliers. The company has also revised its initial plan to start production with a hybrid pickup truck called Proer.
Instead, GWM will begin by manufacturing its best-selling model in Brazil, the Haval H6 SUV. This decision came after the Brazilian government announced the gradual reinstatement of import taxes on electric and hybrid vehicles.
GWM plans to produce 25,000 Haval units annually, with the factory licensed for a total capacity of 50,000 vehicles per year. Initially, the hybrid version will only run on gasoline, but the company has contracted Bosch to develop a system compatible with ethanol fuel.
The Brazilian factory will be GWM's first in the Western Hemisphere and its third outside China. The company, founded 40 years ago, is China's largest private automaker.
GWM has adopted a strategy of building a leadership team composed of experienced Brazilian automotive professionals.
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