Ford Motor Co is looking to plough 2 billion reais (US$1.15 billion) of investment into its Brazilian operations between now and 2015, it was reported today.
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A news report by Reuters said today that the majority of the investment would be directed towards a plant in the northeastern Bahia state. The company hopes to expand production there.
The plan includes a series of tax breaks at federal and state level from Brazil’s government.
An official ceremony marking the investment will take place today at the company’s Camacari plant.
Vehicle sales and production picked up sharply in Brazil in October. Production was put at 316,000 units up 15.7% from October from September and also up 6.3% when compared to October 2008. Vehicle sales surged 23.1% in October over last year, to 294,100 units.
Vehicle sales in the first ten months stand at 2.6m units, 6.1% higher than the same period of last year.
Analysts say car demand in Brazil this year is being helped by tax breaks and continuing low interest rates, as well as plenty of new model activity.
Industry watchers are largely positive about the short and medium term prospects of the Brazilian market which has withstood the economic downturn better than most. Analysts have suggest that a growth rate next year of 5% to 6% in comparison to the already record year of 2009 may be possible.
