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16 2.11 to 2.16.2019 Automaker C abreuva, SP - Caoa Chery has expanded its nationalization plan for parts and components in Brazil: the almost four hundred items have raised to 520, according to Marcio Alfonso, its CEO. In addition to reducing dependence on the exchange, Alfonso said that locating the purchase of the components also decreases the delivery time: “An imported part takes ninety days to arrive at the factory, while a national one requires fifteen. That’s why the more Brazilian components our vehicles have, better for production and for our aftermarket services”. According to Alfonso, the initial focus will be on items that the automaker will use more frequently in the aftermarket, as the case of filters and brake pads that need to be replaced in scheduled car revisions. “After those items, we will advance the nationalization of other components that are part of the engine and the lighting of cars”. The company already has approximately 180 Brazilian items, such as the injection system used in Tiggo 7, which was developed by Bosch in Brazil, and components from other companies such as Michelin and Pirelli. In all, about fifty Caoa Chery suppliers are already Brazilians and the expectation is that number to increase until 2020, along with the nationalization of the parts in Brazil. The company has also worked on the dealer chain: Alfonso’s goal is to have more than 110 dealerships this year, compared to the 65 units that were already operating in 2017. Another investment by Caoa Chery is in training some employees to be specialists in the brand’s vehicles, with all the necessary knowledge to serve customers -- each dealership will have two specialists. Caoa Chery seeks to nationalize 520 components in Brazil Caio Bednarski | caio@autodata.com.br

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