Future BYD factory in Bahia still has no address

The recently-announced factory of the Chinese automaker BYD in Bahia still does not have a fixed address. The official announcement only mentioned it would be located in Camaçari, where the old Ford factory is currently up for sale, indicating that the Chinese company is interested in purchasing it. If the Americans and Chinese fail to reach a consensus, the state governor, Jerônimo Rodrigues, promises to find an alternative location.

The efforts of the governor of Bahia are commendable. The company recently confirmed an initial investment of R$ 3 billion. In the first implementation phase, they plan to hire 1,000 employees and produce 150,000 vehicles per year. As the project progresses, the company’s global vice president, Stella Li, predicts that the workforce will eventually expand to 5,000 employees.

During her speech, Li mentioned that BYD intends to manufacture electric cars, buses, and trucks in its future production plant. She also pledged to produce affordable electric vehicles in the country and transform Bahia into an “innovation center.” The production is scheduled to commence in the last quarter of 2024.

According to the governor, the cooperation agreement signed with BYD also includes measures for research and production of ores in the state. Ores such as lithium are crucial for battery manufacturing. BYD’s investment in Bahia will be part of a state incentive program that grants a 95% reduction in ICMS state tax until 2032.

In the same interview, Rodrigues discussed the negotiations concerning the grant of the port previously owned by Ford to BYD. The port, located in Aratu Bay, Candeias, was initially built exclusively to serve Ford, which closed its factory in Camaçari in 2021.

In São Paulo, the National Federation of Vehicle Distribution (Fenabrave) celebrated the federal government’s tax incentives to boost car sales up to R$ 120,000. The total value of the benefits reached R$ 800 million, which was converted into consumer discounts.

In June, 179.6 thousand cars and light commercial vehicles were sold, marking an 8.6% increase compared to the same month in 2022. For the semester, there was a growth of 9.76%, with a total of 934.5 thousand units sold. Regarding trucks and buses, the market reached 189.5 thousand vehicles in June, an increase of 6.46% compared to last year. The semester total of 998.2 thousand units reflected an 8.7% increase.

Source: Valor Econômico

To read the original news report, please visit: https://valor.globo.com/empresas/noticia/2023/07/05/fabrica-da-byd-na-bahia-ainda-nao-tem-endereco.ghtml

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