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Chinese car maker to build plant in Brazil

Chinese car maker to build plant in Brazil SAO PAULO, BRAZIL (BDCi) — Chinese car maker JAC Motors will build a factory in Brazil to boost its presence in Latin America’s biggest car market. Sergio Habib, the Brazilian auto importer who began selling JAC vehicles this year, and Jianghuai Automobile Co., known as JAC, one of China’s biggest automakers, are set to announce plans Monday to jointly build a plant that will begin producing vehicles in 2013, Valor Economico reported, without citing sources. JAC sales reached 10,073 autos through July 15, according to auto dealers association Fenabrave. The company is the 13th biggest in Brazil in terms of sales, accounting for 0.7% of the market that is expected to reach 3.7 million autos this year. According to reports, the investment from JAC will be between $600m and $900m for the assembly plant The company is the latest Asian car maker to start production in Brazil, others include China’s Chery and South Korea’s Hyundai. Jianghuai Automobile, also known as JAC, plans to have the capacity to produce 100,000 vehicles annually. Brazil’s car sales surged to double digit growth in the first half of this year, before falling back in July because of rising interest rates. Hyundai Motors is already building an assembly plant in Brazil, and Japan’s Nissan and Honda have announced investments into the country as well. Brazil is the fourth largest car market in the world. By Janete Weinstein Source: Wall Street Journal August 4, 2011

5:24 p.m. PDT

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