Brazil looking for Chinese investors to launch EV production in Northeast

 

The Brazilian government is negotiating with Chinese investors the relaunch of the former Ford auto factory in Camaçari, Bahia (Northeast).

A Chinese automaker is now expected to take over the Camaçari factory to produce electrical vehicles, and a deal could be announced during the visit to China by Brazilian President Lula da Silva, scheduled for March, Veja magazine reported.

Camaçari is the fourth most populous city in Bahia and an important industrial center in the Northeast of the country. Ford’s departure had a brutal impact on tax collection, money circulation and economic activity in the municipality.

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Ford announced in January 2021 the closure of its production activities in Brazil, which also included industrial facilities in the municipalities of Taubaté (SP) and Horizonte (CE).

Between January and October 2021, the production of motor vehicles, trailers and auto parts plummeted 94.6% in Bahia.

From January to November of the same year, the same sector lost 4,800 jobs, most of which in Camaçari, according to official data.

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According to Veja, the visit by Lula to China, Brazil’s main trading partner, is treated as strategic by the President´s office and there are expectations of important agreements in the areas of agribusiness, infrastructure and technology.

“Lula is not worried about the repercussions in the United States of this mission to China. He is pragmatic and talks to everyone”, says a minister.

 

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