After previous reports that Mercedes-Benz is preparing to enter the Brazilian car market with a local production site a person familiar with the matter back this news, saying Mercedes-Benz, the world’s third-biggest maker of luxury cars, plans to build a factory in Brazil to compete with BMW and Audi.
Mercedes will announce as soon as today intentions to resume production in South America’s biggest economy in 2016, said the person, who asked not to be identified speaking ahead of the official announcement. The Stuttgart, Germany-based automaker declined to comment.
The new plant, located in the state of Sao Paulo, will assemble the mid-sized C-Class and GLA compact sport-utility vehicle, the person said. Daimler, also the world’s largest truckmaker, stopped building cars two years ago in the Brazilian state of Minas Gerais, converting the plant to assemble commercial vehicles.
The German carmakers are opening assembly plants to bypass high import taxes limiting their growth in the country. BMW plans to start production in Brazil’s southern state of Santa Catarina next year and is investing 200 million euros ($271 million) in the new facility. Audi said last month that it will revive vehicle production in Brazil with an investment of 500 million reais ($225 million) through 2016.
) - Tuesday, October 1st, 2013 - filed under Industry
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