Local Assembler May Buy Ford Truck Plant in Brazil

Brazilian carmaker CAOA is negotiating to buy Ford Motor Co.’s truck plant in Sao Paulo that is slated to close later this year, a source tells Reuters.

CAOA, which describes itself as Ford’s largest distributor in Brazil, currently assembles small cars and trucks for Chery Automobile and Hyundai Motor Co.

Ford said earlier this month it intends to shutter its Sao Bernardo do Capo factory, idling 3,000 workers who currently build F-350 and F-4000 Cargo trucks and Fiesta small cars. Last year the facility operated at only 12% of capacity.

The governor of Sao Paulo says three companies have expressed interest in buying the 52-year-old plant. Reuters notes that no sale has been finalized. Ford denies it has been approached directly by CAOA.