As part of its plan for a BRL1.1bn (US$450m) spend that began in 2010 and runs to the end of 2015, the Souza Ramos Group-owned Mitsubishi Motors plant in Catalão, Goiás state (312km or 195 miles south of Brazilian capital Brasília) last month started assembing the ASX SUV [Outlander Sport in some markets] in both two and four wheel drive versions.
Five models will be produced eventually. Three were launched earlier – the L200 Triton medium size single and double cab pick-ups plus the Dakar mid size SUV. The Lancer will follow the ASX in a year.
Prices of the new model line will range from BRL83,490 (US$37,000) to BRL105,990 (US$47,100), about 5% less than the version until now imported built up from Japan.
The larger Outlander, which shares architecture with the ASX/Lancer, is being reengineered as this segment is declining here in Brazil. Since opening 16 years ago, the Catalão plant has buult over 330,000 vehicles.
ASX local content is about 60% and includes engine assembly using some locally made ancillaries. Plans call for localising most components.
For now, the all aluminium two litre/122 cu in engine will run only on petrol but a flexfuel version will be available within the year before the Lancer arrives.
Brazilian engineers last year reengineered the Mitsubishi 3.5 litre/213.5 cu in petrol V6 used in the Triton and Dakar as a flexfuel unit compatible with the local sugar cane derived ethanol. From this month, a flexible fuel 2.4-litre/146.4 cu in I4 will also be offered for both.
Catalão current capacity is 100,000 units a year. A large additional hall housing a new paint shop will be ready in 2014, boosting capacity to 140,000. The automaker expects to employ 4,500 directly by the end of this current investment phase in 2015.
As for assembling the Mirage compact locally, the Brazilian importer is reticent. It would require a large investment to robotise both assembly and body shop/welding lines to assure a competitive entrant in this hard fought, high volume but low price/low profitability segment.
A decision will not be made - publicly - before 2015. If competitive prices for exports around South America at least can be achieved (this will depend on the Brazilian real exchange rate), a Mirage project might yet take off.
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