Chinese Great Wall (CGW) buys Mercedes-Benz car factory in Iracemápolis, SP

Chinese automaker Great Wall Motors (GWM) reported that it has purchased the Mercedes-Benz car factory in Iracemápolis, in the interior of São Paulo. The information was published by the newspaper “O Globo”, this Sunday.

According to the publication, the official announcement of the deal has not yet taken place, but the acquisition of the São Paulo factory was completed about two weeks ago and was mentioned in GWM’s internal newspaper, on June 25th.

The publication discloses the technical details of the Mercedes plant in São Paulo and confirms that they are within the standards required for the production of GWM cars in Iracemápolis.

When contacted, Mercedes-Benz do Brasil reported that it “does not comment on speculation”.

According to “O Globo”, the Chinese’s arrival in the country is in alignment with the automaker’s internationalization plan; the company has also started producing in Russia and Thailand in the last 2 years and is about to do the same in India. The GWM expansion can also be seen as another movement in the ongoing changing of the guard in the world economy with the shift of the US-Europe axis towards Asia, pushed mainly by the rise of China.

According to the publication, the Chinese automaker’s strategy is to buy manufacturing units in the countries of interest. In Brazil, the company acquired the Mercedes-Benz plant; in Thailand, it acquired a General Motors (GM) plan; and in India, the business is expected to enter the country through the acquisition of another GM plant.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/empresas/noticia/2021/07/04/chinesa-great-wall-compra-fbrica-da-mercedes-benz-em-so-paulo-diz-jornal.ghtml

Sharing is caring!