Government Discusses Possibility of Reopening Old Ford Factory in Bahia. Unit Will Be a New Electric Car Factory of the Chinese Company, BYD.
The old Ford factory in Camaçari, a municipality in Bahia, may be reopened for the production of electric cars. The government is negotiating with the Chinese BYD automaker for the resumption of the facilities. The news was confirmed by the Minister of Labor, Luiz Marinho, in a post on Twitter, where he shared an article from Veja magazine, discussing the reopening of the Ford factory with Chinese investors for the production of electric cars.
BYD Plans to Produce Electric Cars at the Old Ford Factory
Ford shut down the unit in Bahia in early 2021, amid the closure of its production activities in Brazil; however, since last year, rumors indicated that the Chinese automaker BYD, one of the world leaders in electric car production, was interested in the Bahia unit. Last Sunday (26), the state governor, Jerônimo Rodrigues (PT), explained that this is a return of industrial activity in the Northeast, with the production of electric cars by the Chinese company, where the Ford factory operated until 2021.
According to Jerônimo Rodrigues on his Twitter, the resumption of industrial development in the Northeast is on the way, and the Lula government is already negotiating the installation of the Chinese automaker BYD, where the Ford factory used to be. Rodrigues emphasized that President Lula will visit China and discuss the installation. The American automaker ended its activities in its Camaçari unit in January 2021 after 20 years of operation, deciding to withdraw from Brazil. At the time, the company announced the layoff of 5,000 workers in Brazil and Argentina.
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Understand Why BYD Has Not Yet Started Operations at the Ford Factory
In Camaçari, Ford produced the Ka and EcoSport models. At the beginning of 2021, the company also announced the closure of its factories in Taubaté (SP) and Horizonte (CE), in addition to the Bahia unit. Since the multinational ceased operations, there have been rumors that the Chinese BYD will establish itself in Bahia.
In October last year, the then-governor of Bahia, Rui Costa (PT), posted on his social media that he had signed a letter of intent with the world’s largest electric car manufacturer for the installation of three factories in Bahia.
At that time, the communication sector of BYD stated that the letter of intent was indeed signed between the automaker and the Bahia government; however, there were still pending matters under review. The municipality in the state hosted the first automobile industry in the Northeast after a long political and fiscal battle in the 1990s and became a development hub in the years that followed.
The closure of operations worsened the economic situation in the region, impacting mainly the future of service providers who established themselves locally to support the operation. Although it no longer produced vehicles in the state, Ford maintained investments.
Discover BYD
The Chinese brand focuses on the production of electric vehicles and other components related to the electrification ecosystem. The acronym for Build Your Dreams, BYD is a company providing electric solutions for mobility, completing electric buses and trucks, photovoltaic systems, and batteries.
Present in Brazil since 2015, BYD already has three factories, the first of which opened seven years ago in the municipality of Campinas (SP), responsible for assembling fully electric buses. In 2017, the second plant opened, also located in Campinas, for the production of photovoltaic modules. The company’s third unit is in Manaus (AM), inaugurated in 2020.

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