Ford has announced that it will sell its Brazilian factory in Sao Bernardo do Campo to local car manufacturer CAOA.
The Blue Oval had already declared back in February that it would shut down its oldest plant in Brazil as part of its global restructuring plan and a move to exit the heavy truck business.
Sao Paulo state governor Joao Doria rushed to try and find a buyer for the factory in order to retain jobs, and negotiations between CAOA and Ford have been ongoing since February, Reuters reports.
Te media were told by Doria that the plant’s new owner has yet to be determined how many jobs will be retained until the sale is officially closed after a 45-day due diligence process. CAOA also hasn’t said how many jobs it will keep, but the president of the union representing Ford’s workers, Wagner Santana, says the Brazilian site will only retain 800 workers and let 1,300 go. The remaining 900 or so could be employed by Ford elsewhere, while those who stay may have their salaries cut by about 20 per cent.
Doria, nevertheless, indicated that CAOA should look to retain all jobs if it wants to enjoy all possible tax benefits.
Ford opened its factory in Sao Bernardo do Campo in 1967 and has primarily used it over the decades to build heavy trucks and the Fiesta supermini. This move will enable it to focus more of its resources on a newer plant situated at Brazil’s Northeastern state of Bahia.