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The Ford logo is visible in Brazil's oldest Ford factory, after the company announced its closure at Sao Bernardo do Campo, Brazil, on February 21, 2019. REUTERS / Amanda Perobelli
SAO PAULO (Reuters) – Brazilian automaker CAOA has signed a confidentiality agreement to negotiate the possible purchase of the Ford Motor Co plant in the industrial city of Sao Bernardo do Campo, according to a source familiar with the matter.
In February, Ford announced the closure of the country's oldest plant as part of an overall restructuring plan for 3,000 jobs.
This announcement sparked a campaign led by the governor of Sao Paulo, Joao Doria, to find a buyer for the space.
Reuters announced CAOA's interest in the plant last month, but at the time, up to three different companies wanted to buy it.
Ford declined to comment on the confidentiality agreement or whether it was CAOA who had signed it. CAOA did not immediately respond to a request for comment.
Negotiations are not final, but this indicates that the two companies are about to reach an agreement, said the source.
Brazil has long been the hub of automotive manufacturing in South America and has brought many global manufacturers of well-known brands to settle here. But CAOA is the rare company with national capital. She currently produces cars for Hyundai and holds a 50% interest in the Chinese operation Chery in Brazil, which led to the new car branding under the name CAOA Chery.
It also has close relationships with Ford as the largest distributor in Brazil.
Reporting by Marcelo Rochabrun, edited by Franklin Paul
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