Ford Plans $2.3 billion investment in Brazil

21 Nov 2009

US auto major Ford Motor Co. said yesterday that it will invest Brazilian reais (R$) 4 billion ($2.3 billion) over next five years in Brazil for expansion of its production facilities mostly located in the northeast of the country.

The major portion of the planned investment is expected to go to Ford's main factory in Camacari in the state of Bahia that produces Fiesta cars, and the Troller off-road vehicles plant in Ceara.

Brazilian president Luiz Inacio Lula da Siva and Bahia governor Jaques Wagner attended the announcement ceremony in the plant premises in Camacari, along with Ford's president for the Americas, Mark Fields.

The investment is the Company's largest, since the auto major started operating in the country 90 years ago.

"This is a very large investment for Ford. For us this shows our confidence in the country, in the economy and the workers and consumers here in Brazil," Fields said.

The Brazilan federal and state governments have offered various tax incentives to the auto unit, designed to encourage the investment in capacity expansion.