It has been published that, German auto-maker Daimler AG said early in October that it plans to set up a new Mercedes-Benz assembly plant in Brazil on 7 October 2013. One of the aims of this move is to reduce the impact of Brazil’s country’s high import taxes on cars.
The local production will allow them to manufacture more competitively in Brazil, without the additional 30% in taxes that would result from the need to import finished products into the country. Last year the Brazilian government raised the level of import taxes on foreign-made cars. As a result of this move some of the largest automobile manufacturers including BMW and Audi have begun moving production to the country.
