Chinese automaker Great Wall Motors acquired Mercedes-Benz’s manufacturing plant in Brazil, marking a significant step into the Latin American market. This acquisition opens opportunities for Great Wall to produce and distribute trucks in Brazil, competing with dominant American brands.
The former Mercedes-Benz plant in Iracemapolis, Sao Paulo, Brazil, will be used by Great Wall Motors to produce trucks.
Former Mercedes-Benz plant in Iracemapolis, Sao Paulo, Brazil, now owned by Great Wall Motors
Great Wall Motors Bets on the Brazilian Market
The decision to acquire the Mercedes-Benz plant in Iracemapolis, Sao Paulo, came after Daimler, Mercedes-Benz’s parent company, announced it might cease production in Brazil in December 2020. Daimler stated that the group’s luxury car sales had declined due to the Covid-19 pandemic, making it impossible to maintain operations at the 1.2 million square meter factory.
Great Wall Motors quickly seized this opportunity. With plans to produce 100,000 vehicles per year at the new plant, Great Wall Motors demonstrates significant ambition in the Brazilian and Latin American markets. Local truck production will help Great Wall Motors reduce transportation costs and meet growing market demand.
Opportunities and Challenges for Great Wall Motors
The truck market in Brazil is currently dominated by American brands. However, with Great Wall Motors, the US brand, acquiring the German truck manufacturing plant, Great Wall Motors can leverage German technology and reputation to compete. The company can also benefit from Brazil’s industrial policies, which encourage automakers to establish factories in the country.
Great Wall Motors logo
However, Great Wall Motors also faces numerous challenges. The company needs to build trust with Brazilian consumers, who are still relatively unfamiliar with the Chinese brand. Additionally, Great Wall Motors must adapt to the business environment and culture in Brazil.
From Pickups to Electric Vehicles: Great Wall Motors’ Development Journey
Founded in 1984, Great Wall Motors initially focused on producing pickup trucks. Subsequently, the company expanded into SUVs and electric vehicles. In 2017, Great Wall Motors launched its first electric vehicle, the C30EV. In 2018, the company partnered with BMW to produce Mini electric vehicles in China.
Great Wall Motors' first electric vehicle – C30EV
The acquisition of the Mercedes-Benz plant in Brazil is a strategic move by Great Wall Motors to expand its global market presence. With its ambition and potential, Great Wall Motors is expected to become a formidable competitor in the global automotive industry.
Conclusion
The acquisition of the German truck through Great Wall Motors purchase of the Mercedes-Benz plant in Brazil is a noteworthy event in the automotive industry. This is an important step for Great Wall Motors into the Latin American market, while also opening opportunities for the company to compete with US brands. The success of Great Wall Motors in Brazil will depend on its ability to adapt to the local market and build trust with consumers.
