Ford Will Pay $62 Million To Brazilian State Due To 1999 Factory Cancelation

At the end of the 1990s, Ford decided to build a new

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by Cristian Gnaticov

December 1, 2016 at 12:58

At the end of the 1990s, Ford decided to build a new car factory in the Brazilian state of Rio Grande do Sul. However, the automaker changed its mind shortly after and went for the state of Bahia instead.

Selecting the new location for the facility set the basis of a lawsuit, filed by the local authorities of Rio Grande do Sul against the automaker.

After 17 years, the two parties have, according to Reuters, reached a settlement, which sees the company paying 217 million reais ($61,9 million) in compensation. The money will be used by the country’s southernmost state to help pay state employees.

The Camacari plant in Bahia, on the other hand, celebrated its production kickoff back in 2001, and currently counts 8,753 employees, who are putting together the Fiesta RoCam and EcoSport.