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 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.


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    To put things more specific, the plant was to be built at the city of Guaíba, in Rio Grande do Sul, near Porto Alegre, but on the other side of the Guaíba river, but still in the Porto Alegre metropolitan region:

    For now what we know is that the Chinese brand Foton is building its truck factory at the city, but for now is building its products at the Agrale headquarters in Caxias do Sul while the plant isn’t ready. Agrale is repeating a kind of deal that in other times was signed with Navistar to build the International 9800i while its plant in Canoas (also in metro Porto Alegre) was being readied.
    A much needed correction is about Ford’s portfolio that comes from Camaçari: this plant started life building the local spec of the Mk5 Fiesta, renamed Fiesta RoCam when the Mk6 started being built in the São Bernardo do Campo factory, the main one of the Blue Oval here in Brazil. This was in 2002 and a year later the plant in Bahia started building the Mk1 EcoSport, a huge success here and one of the world starters of the small SUV craze we’re seeing now across the planet. The Mk1 EcoSport was replaced by the Mk2, now being released in its restyled form in U.S. and being sourced from India. After the Mk2 Eco, Camaçari plant started building the Mk3 Ka (Ka+ in Europe and Figo Aspire in India), a car that replaced both the Brazilian spec Mk2 Ka (derived from the Mk4 Fiesta platform while using some body parts of the Mk1 Ka) and the Mk5 Fiesta, replacing this last one also in the sedan variant.

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