Chinese auto giant GWM inaugurated its first Brazilian factory earlier this month, a move expected to help enhance its position in South America’s largest automotive market, reports CNN Brasil.
Brazilian President Luis Inácio Lula da Silva finalised the first GWM “made in Brazil car”, a white Haval H6 GT hybrid SUV, alongside GWM Global CEO Mu Feng and Parker Shi, president of GWM International. The Haval H6 is one of three models confirmed for the new factory in the São Paulo city of Iracemápolis, GWM’s first in the Americas and the Southern Hemisphere. Previously owned by Mercedes-Benz, the 1.2-million-square-metre facility has the capacity to manufacture up to 50,000 vehicles per year. It currently employs 600 workers, a figure expected to nearly double to 1,000 by the end of the year.
The Iracemápolis factory uses a “part by part” system, which is more intensive than the SKD (semi-knocked down) system used by BYD in its Brazilian factory but allows for greater localisation of components from the first year of operation. Some 18 Brazilian suppliers are already integrated into its supply chain.
[See more: BYD has rolled out its first Brazilian-made electric vehicle]
The Haval H6 comes in four versions with a hybrid system, ranging as high as 393 horsepower – the specs for the inaugural unit. The hybrid SUV is already wildly popular in Brazil, ranking as the best-selling hybrid in the country over the last two years, according to the Brazilian Electric Vehicle Association (ABVE). GWM plans to launch the mid-size pickup Poer P30 and the seven-seater Haval H9 SUV from the new facility this year.
Both vehicles will initially be assembled using the CKD (completely knocked down) system, meaning final assembly will occur in Brazil using imported parts, with a forecast of 60-percent nationalised components from the first production cycle. Both are also turbo-diesel engines, part of GWM’s strategy to expand its footprint in the market with combustion-trained motor vehicles. An emphasis on comfort, safety and technologies not seen in competitors will help GWM’s new entries stand out from the crowd.
GWM used the inauguration to announce its first R&D centre in South America, located next to the factory, and show off two models under consideration for launch in Brazil: the Souo S2000 GL touring motorcycle and a hydrogen-powered heavy-duty truck. The latter is scheduled to begin testing in Brazil next month.
