The multinational group has a Chinese brand in its portfolio and says it could make use of the same model as its competitors
In Brazil, without national brands, the attitude of buyers is clearly liberal. The Chinese moved quickly and took advantage of the low import tax for electric and hybrid vehicles that only returns to 35% next July, in a slow climb over two years. There was no taxation until January 2024. However, another front is opening up in relation to the CKD (completely disassembled assemblies) or SKD (semi-disassembled) production model.
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Until now, only Anfavea and Sindipeças have positioned themselves against the uncontrolled expansion of these two arrangements compared to the traditional one, whose local content index is usually 70% to 80% or a little more. In this case, components from suppliers are included, as well as stamping, framing, painting and final assembly. In other words, a long chain that generates better-paid jobs.
Expensive models, such as those assembled by Audi (Paraná), BMW (Santa Catarina) and Land Rover (Rio de Janeiro), are justified by the low production scale. Replicating for mid-priced or entry-level vehicles will clearly generate unemployment here and jobs abroad in particular in China, but not only. GM, Renault and Stellantis decided to produce electric vehicles in CKD or SKD with low impact on jobs because they represent only 6% of car and light commercial vehicle sales. To recall: plug-in hybrids are not electric, unlike those with a range extender provided by a motor-generator that does not drive the vehicle, only recharges the battery.
Herlander Zola, president of Stellantis South America, said: “If this business model, CKD and SKD, is attractive, we will use it too. The goal of an industry is to make its future viable, have profitability and generate investments. Without this there is no future. Thus, we need to use the same weapons as our competitors.”
Both Stellantis (Leapmotor) and Renault (Geely) and GM (Saic-Wuling) have already decided to apply the same strategy on a small scale, with their Chinese partners. However, they should maintain production as implemented today, if there is a balance of opportunities.
