CAOA is in talks to buy Ford factory; others interested

Brazilian automaker CAOA, which produces vehicles with Korea’s Hyundai Motor Co and China’s Chery Automobile Co, is in talks to buy Ford’s São Bernardo do Campo factory, according to Reuters. São Paulo state governor, João Doria, has also mentioned three companies have expressed interest in the purchase, without naming them. According to Doria, of the three interested parties, two are international companies. Last week DatamarNews reported, Doria will commit to helping Ford find a buyer.

Ford plans to close its oldest Brazilian factory in São Bernardo do Campo and shut down its heavy truck business in South America as part of the company’s global restructuring program. Ford used only 12% of its car production capacity at the São Bernardo plant in 2018, whereas its heavy truck output operated at 19% capacity.

CAOA, originally a dealership company, has recently started manufacturing China’s Chery cars in a factory co-owned with the Chinese company.

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