Wuhu, China, 27 April – The world chairman of the Chery group, Yin Tongyao, has announced his company’s intention to build a car factory in Brazil by 2012, according to Brazilian financial newspaper, Gazeta Mercantil.
The factory, which represents an investment of US$700,000, the location of which has yet to be decided, is scheduled to assemble 150,000 vehicles, which will be exported to Latin America.
However, Yin said that before the group started building the factory it needed to develop “flex-fuel” technology, “which is something we have not mastered yet.”
“Flex-fuel” technology refers to engines that can run on both biofuel and gasoline or a blend of both and almost all new cars in Brazil – the world’s biggest exporter of ethanol – have these engines.
The deputy chairman of Chery, Zhou Biren, said in his turn that the group was investing in technology to change the inferior product image that Chinese cars have.
“It’s tough work, but trust is gained step by step. This happened with the Japanese and with the Koreans,” he said.
The Chery group has four models of car on the Brazilian market this year. (macauhub)