MG Motor Brazil

MG Motors in Ceará is being hindered by Brasilia

The Government of Ceará is interested in attracting a car assembler, but complaining of various bureaucratic obstacles that have prevented this "dream". The economic development agency of Ceará (Adece) are trying to attract the MG Motors (Morris Garages) to the State.

However, the Adece says that the new automotive system hurt the intention to capture interested in global automotive sector, since the tax incentives for production in the Northeast have been closed by Innovate Auto, which equaled the conditions in the entire country.

The difficulty in bringing a large automaker to Ceará has reportedly been hampered by Brasilia after the annulment of the exemption of the IPI for the production of a particular automaker interested in.

Later, according to Adece, the same benefit was granted to another manufacturer to install in São Paulo. Ceará has applications for local incentives in Congress, but there is no agenda for future voting.

Finally, the negotiation with the MG Motors was being treated with European representatives, since the policy changed in China and there is the difficulty of getting a deal, after the general election in the country.

SAIC has State participation and their actions can be influenced by the Chinese Government. For now, the talks are only at an early stage.

This month, MG Motors formed a partnership in Thailand for production of automobiles, thus becoming the third plant in the UK brand worldwide. The Morris Garages selling cars in Brazil from 2011.