Ford plans £1.4bn investment in Bahia, Ceara and Sao Paulo
Date added: 23rd November, 2009 at 09:37
(view all articles from November, 2009)
Categories: Economy
Ford is planning a four billion reais (£1.4 billion) investment in Brazil, the bulk of which will be spent on the Camacari car plant in the North East state of Bahia.
The manufacturer announced that the move would allow the factory's output to increase by around one-fifth to 300,000 vehicles a year.
Money will also be spent on Ford's Troller facility, in Ceara, which builds off-road utility vehicles.
News agency Reuters reported that Mark Shields, Ford's president for the Americas, said: "For us this shows our confidence in the country, in the economy and the workers and consumers here in Brazil."
Speaking to an audience which included the Latin American country's President Luiz Ignacio Lula da Silva, Mr Shields added that it would be a "very large investment" for the group.
Furthermore, its chief executive for Brazil, Marcus de Oliveira, said that the investment in Bahia would create around 1,000 new jobs in the state.
Ford was the first vehicle manufacturer to operate in Brazil when it opened its first plant in the country 90 years ago.
A version of its popular Fiesta, launched specifically for the Brazilian market, was released in 1996, with its Ka and Courier pickup lines following the year after. These helped Ford to take 10.7 per cent of the country's auto market at the time, a figure which has since grown to 13 per cent.
This makes it the fourth largest carmaker in the country.
As part of the five-year investment in Bahia and Ceara, the government has agreed to extend tax breaks to the company until 2015.
Consumers in the country have also benefitted from tax incentives to buy new vehicles, a move which was intended to encourage sales throughout the economic downturn.
While these incentives are due to expire at the end of December 2009, analysts still expect purchases to rise by another nine per cent across next year.
On hearing the announcement, President Lula, who worked in a car plant during the 1970s, said: "It is with great pride that I stand here in front of you to say that Brazil is going through a magical moment in its economic life, in its development."
As well as expanding operations in Bahia and modernising the production line in Ceara, the company will develop its factories in Sao Paulo state. This includes its testing plant at Tatui.
Related Articles
International reserves will fund investment in Brazil, says Lula
Date added: 18th November, 2009 at 10:04
(view all articles from November, 2009)
Brazil sees growth in car sales and output
Date added: 10th November, 2009 at 09:21
(view all articles from November, 2009)
Brazil's economy will grow 5% in 2010, says President Lula
Date added: 9th November, 2009 at 10:33
(view all articles from November, 2009)