Updated on: December 14, 2024 2:21 am GMT
Great Wall Motors (GWM), China’s largest manufacturer of SUVs and pickup trucks, is making a significant move into the Brazilian automotive market with plans to open a new factory by May 2025. This facility, strategically located in Iracemápolis, promises to create jobs and bolster local production, marking an important step in GWM’s expansion into South America.
New Factory Launch and Production Plans
According to a report by Brazilian newspaper Valor Economico, the new GWM factory aims to produce up to 25,000 vehicles in its first year. This operation will be GWM’s third manufacturing facility outside of China. Previously, the company had been primarily functioning as an importer after acquiring the manufacturing facilities from Mercedes-Benz in 2021.
The factory will focus on producing the Haval H6, a hybrid sports SUV, which has been approved for the Mover tax incentive program. This program encourages local sourcing, research and development, and reduced emissions, making it advantageous for GWM to manufacture vehicles locally.
Job Creation and Local Impact
GWM is not just investing in production; it is also committed to the local community. The company has initiated a recruitment drive for 100 positions as part of its launch process. This recruitment will include:
- 30 roles for the administrative team in São Paulo.
- 70 positions dedicated to factory operations in Iracemápolis.
In addition to these initial hires, GWM plans to create an additional 700 jobs in collaboration with a local technical school, Senai, which was originally established when Mercedes operated in the area.
“Because of the incentives, we revised our plans for which models to manufacture here,” said Ricardo Bastos, GWM Brazil’s director of institutional affairs. This strategy shift indicates a strong commitment to integrating into the local economy.
Innovative Manufacturing Strategy
The GWM factory’s production strategy reflects a shift from assembly to full manufacturing. Initially, the company considered assembling vehicles from pre-assembled kits imported from China. However, the existing high-quality paint shop inherited from Mercedes has allowed GWM to scrap this plan. The decision to manufacture cars part by part enhances the potential for local sourcing and reduces dependence on imported components.
The Mover program played a crucial role in this decision, offering significant tax reductions to companies that prioritize local production. This incentive encourages GWM to invest further in its Brazilian operations, aligning with government initiatives for economic development.
Community Response and Future Prospects
The local community in Iracemápolis is eagerly anticipating the factory’s opening. After the disappointment of Mercedes closing its operations in early 2021, the announcement of GWM’s plans has revitalized hopes for economic stability and job creation.
“The community is excited to have a new player in the automotive industry,” said a local resident. The prospect of new jobs and an influx of skilled labor is seen as a positive development for this small town, located about 150 kilometers from São Paulo.
Conclusion
Great Wall Motors is set to open a new factory in Brazil, marking a significant shift for the automotive industry in the area. The company plans to produce the Haval H6 locally and is dedicated to hiring talent from the region, positioning itself as a key competitor in the Brazilian market. This initiative aims not only to meet the growing demand for hybrid vehicles but also to aid in the economic revitalization of Iracemápolis and its neighboring areas. With the factory scheduled to open in May 2025, the local community and stakeholders are filled with optimism about the opportunities this project will bring.
