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After leaving Ford, Bahia will seek automakers from China to invest in the state
This Monday (11) Ford announced the closure of its activities in Brazil due to low revenues in 2020 in Bahia, Ceará and SP and now states are considering seeking new investors in China. The company will close its doors – for now – only here in the country, temporarily leaving the Camaçari/BA unit in operation. The Bahian government, in turn, is already trying to provide a new investor to replace Ford in the state.
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China investors
With the news, the Governor of the State of Bahia, Rui Costa (PT) contacted the Chinese Embassy in Brazil to try to attract Chinese businessmen and investors interested in taking over the huge factory located in the municipality of Camaçari. The State is also known for valuing the automotive sector and does not intend to lose its place in the podium.
How will Ford act from now on in the country
From now on, the automotive models that will circulate here in Brazil will only be those manufactured in industrial centers close to our country, such as factories in Argentina and Uruguay. The decision took place after the company's data recorded decline milestones in the sale of vehicles, both popular and medium and large. Even the simplest models, such as the Ford KA lineage, failed to meet the expected sales targets.
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Rui Costa, in turn, regretted the closure of Ford in Brazil, but did not hesitate to look for new investors, as this will start a new cycle of job and income generation for the State, bearing in mind that, with The pandemic of the new coronavirus has left a vast unemployment rate across the country.
As an alternative, the Governor of the State of Bahia has in mind the creation of a working group with the Federation of Industries from Bahia to discuss alternatives for the factory. His intention is to continue with the investment in the automobile sector, but he does not rule out other options, in case he does not find investors for the factory.
CNN analyzes the reasons why Ford left the country
“Due to events that occurred in recent years, the automaker was already intending to leave Brazil…. Lack of investments, sales declines, pandemic restrictions and high taxes made the situation in Brazil unsustainable for Ford. Advantages of Manufacturing in Argentina: Fixed company and labor costs are much lower in Argentina. A car manufactured in Brazil can have up to 54,8% tax, that is, more than half of the profits are taxed. Ford's strategy is to focus on large cars and not build more popular ones."
