Negotiations advance for installation of Chinese automaker in Bahia
The proximity of the Chinese automaker BYD's installation in Bahia is becoming evident. The factory at the Camaçari Automotive Hub, previously owned by Ford, has been sold to the state government. Although the reversion agreement was finalized last week, the specific value of the sale has not been disclosed.
By selling the property, the Bahia government can now advance its discussions with BYD. In late July, the Chinese automaker unveiled its plan to inject BRL 3 billion into the establishment of three factories within the state, promising the creation of 5,000 job opportunities.
Among these units, BYD has indicated that one will be exclusively focused on producing chassis for electric buses and trucks. Another unit is slated for the manufacture of hybrid and electric vehicles, projected to have an initial capacity of 150,000 units annually, with the potential for production to be doubled. Remarkably, this will mark the company's inaugural electric car plant on the American continent. The third unit will be geared towards processing lithium and iron phosphate to cater to international markets.
BYD is currently awaiting decisions regarding tax incentives that will be transferred from Ford within the special automotive regime in Brazil’s Northeast. This regime, set to expire in 2025, has seen an alteration in the outcome of the second-round vote on tax reform in the House, with the extension of the incentive until 2032 being narrowly revoked. In the Senate, where the North, Northeast, and Central-West states hold substantial influence, the possibility of reestablishing the extended benefit within the legislative text remains.
In April, during his visit to China, President Luiz Inácio Lula da Silva held a meeting with BYD CEO Wang Chuanfu. During this encounter, Chuanfu highlighted the effectiveness of Chinese public policies that have bolstered the nation's “robust electric vehicle industry,” encompassing both passenger cars and public transportation buses.
Ceased operations
The Camaçari industrial complex ceased operations in January 2021, following Ford's declaration of exiting manufacturing operations in Brazil to solely focus on importing. Notably, the facility was responsible for producing the EcoSport SUV, as well as the Ka hatchback and sedan models.
Apart from the facility in Bahia, Ford also shuttered its Taubaté plant in São Paulo. This plant was responsible for manufacturing engines, trucks, and vehicles like the Ford Fiesta.
At the end of 2021, the Ford group finalized the closure of its Horizonte plant in the state of Ceará. This facility was dedicated to the production of Troller-branded jeeps. The sale of this unit is currently in the negotiation phase with the state government.
The company retained solely the Product Development Center in Bahia, the proving ground in Tatuí, and its regional headquarters, both located in São Paulo.
