According to news from Forbes website, Sergio Marchionne, CEO of Fiat, the number one car maker in Brazil, said that Chinese automakers are threatening other automakers in Brazil. At present, the Brazilian car market has the largest share of Fiat cars, followed by Ford, General Motors and Volkswagen. However, the continuous rise of Chinese car companies in the Brazilian market poses a certain threat to these companies. Malchonet said that he is deeply worried about Chinese cars entering the Brazilian market. The Brazilian market is a huge market for Fiat. With the growing share of Chinese cars in the Brazilian market, Malchoney believes that Fiat must be alert.
Take Jianghuai Automobile as an example, it is expected that the sales volume of the two new vehicles launched by the company in Brazil at the end of this year will reach 45,000. JAC Motor also invested 600 million U.S. dollars in construction in Brazil and is expected to start production in 2014. Its production capacity will be 100,000 vehicles per year. Another typical representative is Chery Automobile. The company expects to account for 3% of Brazil's market share in 2015, while preparing to invest 451 million US dollars to build a 150,000-year-old automaker in São Paulo. Chery’s new QQ model may pose a threat to the cheapest Fiat Mille model on the Brazilian market.
With the launch of new models and the establishment of a more optimized distribution network, China Automotive will seek to further enhance its competitiveness in the Brazilian market. According to CBS reporter Matthew DeBord, it is only a matter of time before Chinese automakers are able to force Japanese, US, German and Italian (including Fiat) automakers out of the Brazilian market.
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