The Brazilian manufacturer CAOA signs an agreement with Ford on the purchase of a plant: source By Reuters

By Marcelo Rochabrun

SAO PAULO (Reuters) – Brazilian automaker CAOA has signed a confidentiality agreement to negotiate a possible purchase of the Ford Motor (NYSE 🙂 Co factory in the industrial city of Sao Bernardo do Campo, according to a source close folder.

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 by that time, up to three different companies wanted to buy it back.

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 there. But CAOA is the rare company with national capital. She currently produces cars on behalf of Hyundai and holds a 50% interest in the Chinese operations of Chery in Brazil, which led to the change of car brand under the name of CAOA Chery.

It also has close relationships with Ford as the largest distributor in Brazil.