Chinese automaker Great Wall Motors is considering acquiring one of Daimler’s plants in Brazil as the company plans to expand outside China.
The two automakers are in talks on a potential deal worth several hundred million dollars, according to people familiar with the situation. A Great Wall spokesman was unable to comment. A Daimler spokeswoman said the company continues to explore various options for the future of the plant. The German automaker said in December it would stop car production in Brazil, citing difficult market conditions. The company opened its Iracemapolis plant in 2016 to produce the Mercedes-Benz C-Class sedan and GLA crossover.
The company has invested about $ 120 million in this plant, which has a production capacity of 20,000 vehicles per year. Daimler’s current activities in Brazil include testing of buses, trucks and vehicles.
Great Wall Motors announced last year that it was buying facilities in India and Thailand from General Motors. Daimler’s largest shareholder, Chinese billionaire Li Shufu, is also the founder and chairman of the board of Zhejiang Geely Holding Group. At the same time, Geely is a competitor to Great Wall Motors.
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