CAOA Signs Deal With Ford Over Factory Purchase: Source

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CAOA, a Brazilian automaker, disclosed that it has initiated a confidentiality deal to discuss a probable acquisition of Ford Motor Co’s factory in Sao Bernardo do Campo, said a source known with the topic. In February 2019, Ford revealed that it might shut down the factory, which is supposed to be the firm’s oldest one in the country. The reason behind this closure was supposed to be a global reorganization strategy, costing about 3,000 jobs. The announcement by the firm triggered a campaign headed by Joao Doria, Governor, Sao Paulo, to find a purchaser for the space.

Last month, Reuters reported CAOA’s interest in the plant. However, at the time, there were up to three different firms interested in purchasing it up. Ford refused to comment on the confidentiality deal or if CAOA had been the one to sign it. CAOA as well did not immediately reply to a request for comment.

On a similar note, Ford came into the news as it disclosed the shutdown of about three of the four factories of its Russian partnerships. The firm had to take this decision as it will stop making passenger cars in a country as, in recent years, the car sales have slumped, the firm said earlier. In a statement, Ford proclaimed that it has signed an initial agreement with Sollers, its regional partner. This agreement was focused on a key restructuring of its partnership in Russia, aimed exclusively at developing its commercial vehicle business heading forward.

The joint venture is supposed to stop its passenger vehicle portfolio in Russia. Ford disclosed that its latest decision is supposed to assist deliver a more competitive and sustainably commercial business moving forward. The firm said that it will shut down its vehicle assembly factories in Saint Petersburg and Naberezhnye Chelny, Russia, by the end of June this year.

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