Now it's official! Ford ends the contract with the government of Bahia once and for all and the factory will be transferred to the Chinese company BYD; check out details!

Ford officially confirmed this Wednesday (04) that it reached an agreement to transfer the Camaçari factory, in Bahia, to the state government. This paves the way for Chinese electric vehicle manufacturer BYD to take control of the facility. Ford and the government of Bahia signed the transfer contract, allowing the state to immediately use the factory, as stated in a statement, according to the official article on the Vrum website.

The Camaçari factory has been idle since 2021, when Ford announced its decision to end vehicle production in Brazil and focus on imports. This plant used to produce Ka line vehicles, including hatchbacks and sedans, as well as the EcoSport model. Simultaneously, Ford closed operations at two other factories in Brazil, located in Taubaté (SP) and Horizonte (CE), the latter specializing in the production of Troller brand jeeps.

BYD and its plans for the former Ford factory 

BYD had already announced plans to install three industrial units in Bahia, including a chassis factory for electric buses and trucks, one for the production of hybrid and electric vehicles, and another focused on processing lithium and iron phosphate for batteries.

The decision to occupy the Ford factory or build new facilities depended on negotiations for tax incentives offered by the local government to Ford. Now, with the factory under state government control, BYD can proceed with its plans. A Chinese company plans to invest R$3 billion in Bahia, generating around 5.000 jobs. This change represents a new step for the automobile industry in the region and a bet on the future of electric vehicles in Brazil.

Factory in Bahia

According to the statement released to the press, the purpose of the agreement was to simplify and speed up the process of transitioning ownership of the factory, bringing value to both the state and the population of Bahia. 

In March, BYD announced its intention to acquire Ford's last factory in Brazil, the Camaçari Automotive Complex, located in Bahia. The purchase of this automotive hub marks a significant step for BYD, involving the construction of three units within the recently acquired complex. The total estimated investment for this expansion is approximately R$3 billion by BYD.