Feb 16, 2012

The BNDES has approved financing of R$ 307.4 million for automaker Hyundai Motor Brasil to set up an industrial plant in the city of Piracicaba (state of São Paulo) to manufacture passenger vehicles.

This is the first factory of the South Korean firm in Brazil, with production estimated at approximately 150,000 units per year. The deadline for the completion of civil works, installation and testing of equipment for the Brazilian plant is March. 

Production will focus on vehicles provisionally called "Project HB", specially developed to meet the needs of Brazilian consumers.

The vehicles of the HB line will come in three models: Hatchback (5 doors), Sedan (4 doors) and Mini SUV (utility with 5 doors), equipped with 1.0L and 1.6L flex engines and manual or automatic transmission. 

Vehicle production is planned to start later this year, with the Hatchback model. The Sedan and Mini SUV models are due for release in 2013. All models will have, from the beginning of production, the minimum nationalization index required by Brazilian law.

The project will generate about 2,000 direct jobs from the first year of production and another 3,000 jobs for suppliers. The generation of jobs, however, has a compounding effect as automotive suppliers in the interior of the state of Sao Paulo will benefit. Together with Hyundai, automotive suppliers are also setting up production facilities in the region.