[2019-04-17] Beiqi Foton Motor Co Ltd may acquire Ford truck plant in Brazil

Source: Macauhub

Chinese group Beiqi Foton Motor Co Ltd is one of the candidates for the purchase of the Ford group plant in São Bernardo do Campo, inhe Brazilian state of São Paulo, which will be closed, Brazilian newspaper Valor Económico reported.

The newspaper also reported that Mareio Vita, chief executive of Foton Aumark Brasil, the Chinese group’s representative in the country, will be in China this week to explain to the board that Ford’s facilities may be an alternative to building a factory in Brazil from scratch.

Former Minister Luiz Carlos Mendonça de Barros, chairman of the board of directors of Foton Aumark Brazil, said he believed the best option would be to continue with the original project of building a factory in Guaíba (Rio Grande do Sul), where Brazilian partners already have a piece of land, acquired with a package of state tax incentives.

The newspaper also reported that another strong bidder for the purchase of Ford’s ABC plant is the CAOA group of businessman Carlos Alberto Oliveira Andrade, who currently produces vehicles of Korean brand Hyundai and China’s Chery in Brazil.

This project is facing difficulties in terms of financing, as a request for a loan of 2.7 million reais submitted to the São Paulo state government was denied.

Ford’s decision to stop truck production in Brazil, where it had a 12% share of the segment, was of interest to Foton’s management, according to Mendonça de Barros, because it opens up space in the market for the Chinese brand to increase its sales.