Chery considers $700m Brazil factory

Chery Auto, China’s largest independent auto maker, may invest in a US$700 million factory in Brazil, AFP reported, citing a report in Brazil’s Gazeta Mercantil daily. Chery wants to sell into the Brazilian market and to learn more about “flex-fuel” technologies used to produce cars that can run on conventional gasoline or biofuel such as sugarcane ethanol, of which Brazil is the largest exporter. Chery Brazil chief Luis Curi said the factory would be able to produce between 100,000 and 150,000 cars per year. Chery hopes to sell one flex fuel car model next year, and will start selling four conventional fuel models in Brazil in June, two of which will be imported from a Chery factory in neighboring Uruguay.