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After Ford’s Exit, Bahia Will Seek Chinese Automakers to Invest in the State
This Monday (11), Ford announced the closure of its operations in Brazil due to low revenue in 2020 in Bahia, Ceará, and SP, and now states are looking to attract new investors from China. The company will temporarily close its doors here in the country, keeping the Camaçari/BA unit operational for now. The Bahia government, for its part, is already working to find a new investor to replace Ford in the State.
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Chinese Investors
With the announcement, the Governor of Bahia, Rui Costa (PT), has contacted the Chinese Embassy in Brazil to try to attract Chinese entrepreneurs and investors interested in taking over the large 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 on the podium.
How Ford Will Operate from Now On in the Country
From now on, the automotive models that will circulate here in Brazil will only be those produced in industrial hubs close to our country, such as factories in Argentina and Uruguay. This decision came after the company’s data showed declining sales of vehicles, both popular and medium to large ones. Even the simplest models, like the Ford KA, did not meet the expected sales targets.
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Rui Costa, for his part, expressed sadness over Ford’s closure in Brazil but did not hesitate to consider seeking new investors, as this would kickstart a new cycle of job and income generation for the State, given that the new coronavirus pandemic has left a vast unemployment rate across the country.
As an alternative, the Governor of Bahia plans to create a working group with the Bahia Federation of Industries to discuss options for the factory. His aim is to continue investing in the automotive sector but is open to other options if investors for the factory are not found.
CNN Analyzes the Reasons That Led Ford to Leave the Country
“Due to events that occurred in recent years, the automaker was already planning to leave Brazil…. Lack of investments, declining sales, pandemic restrictions, and high taxes made the situation in Brazil unsustainable for Ford. Advantages of Manufacturing in Argentina: Fixed costs and labor are much lower in Argentina. A car manufactured in Brazil can have up to a 54.8% tax rate, meaning more than half of the profits are taxes. Ford’s strategy is to focus on large vehicles and not produce more popular ones.”
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