In Ceará, the first car manufacturer in Brazil

Do not find the title of this column strange, because car factories have become, some time ago, to be called “automakers”. Journalist Bob Sharp, ironically, even suggests that the automobile manufacturers’ association (Anfavea) should change its name to “Anmavea”.

It is a fact that factories receive thousands of parts from suppliers, but they also produce another amount of components. It is enough to enter a car plant to feel the ground swaying with the operation of the gigantic presses (which stamp body parts) of many tons. And the production of engines and gearboxes for most of them. And dozens of other pieces.

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But, after all, an automaker (real) emerged in Brazil, the Automotive Plant of Ceará (PACE), created to assemble automobiles exclusively from a parts kit (SKD). As if it were the assembly of a big Lego.

The history of this factory begins in 1995, built by businessman Rogerio Farias. Two years later, it is sold to Mario Araripe, who starts to assemble his Troller jeep. In 2007, it was sold to Ford, which had no interest in the jeep, but in the tax incentives to which its products were entitled. But, at the request of the Ceará government, it maintained its production, which effectively occurred until 2021, when the North American company closed all its factories in Brazil.

Former Troller, now GM and MG

The plant was then closed until, three years ago, a group from Espírito Santo (Comexport) acquired and modernized the shed and implemented a new assembly line. Model to be produced? From any brand interested in hiring PACE services. The first interested party was GM: it started the partnership by importing all the components of its Spark EUV electric SUV to Ceará. And, soon after, he decided to hire the automaker for the production of the electric Chevrolet Captiva.

A few weeks later, it was the turn of a Chinese company, MG Motors, which belongs to the powerful SAIC, to announce the assembly of two models: the MG4 hatch and the S5 SUV.

What parts are manufactured in Ceará? For now, strictly none. On a visit to its facilities, I joked with one of its engineers: “National, only the air in the tires?”. “No,” he replied, “even the air is Chinese, because the wheels arrive with them mounted.”

So, PACE strictly follows the concept of a car manufacturer: a factory that does not manufacture anything, only assembles.

Uruguayan model

It is the first in Brazil, but there was already another operating along the same lines in Uruguay, Nordex. Which assembles vehicles for Ford (Transit line of vans and vans), Kia (small Bongo truck and also planned the Tasman pickup). And models from Fiat and Peugeot, as Stellantis acquired a part of the company.

The two “automakers” attract Brazilian companies due to the tax incentives that apply to these products. Nordex for being in a Mercosur country. PACE for the tax incentives in the Northeast region.