Brazilian car distributor Grupo Caoa has bought 50 percent of the Brazilian operation of Chery Automobile Co. Ltd of China, and intends to invest up to US$2 billion in the venture over the next five years.
Grupo Caoa and Chery jointly issued a written statement saying their new company will be called Caoa Chery and will use Brazil as a base for exporting motor vehicles all over Latin America.
Grupo Caoa and Chery will each own half of Caoa Chery, but Grupo Caoa will run the new company.
The statement quotes Chery as saying it is “seeking international co-operation and partnerships to grow and achieve global competitiveness, and Brazil is a strategic country to support such growth.”
