Brazil’s Former Ford Plant Finds New Life with Chinese EV Manufacturer BYD
The Story of Ford’s Shutdown and BYD’s Resurrection
Once a bustling parking lot filled with Ford Motor Co. employees, the vast expanse off Avenida Henry Ford in Brazil now sits empty. The closure of the Ford plant, covering an area larger than New York’s Central Park, left many shift workers unemployed. Allison Barreto Sousa, a long-time Ford maintenance technician, was asked to be part of a crew that would dismantle and ship away the equipment from the now-defunct factory. However, Sousa, who had spent almost two decades at Ford, couldn’t bring himself to do it. All his good memories were tied to the company. Now, Sousa and hundreds of his former colleagues are hoping for a new opportunity with Chinese electric vehicle (EV) maker BYD Co.
BYD’s Plans to Revive the Former Ford Plant
BYD Co., known as “Build Your Dreams,” is in negotiations with Ford to purchase and reopen the shutdown factory in Camaçari, Brazil. If successful, this would be BYD’s largest EV operation outside of Asia. The resurrection of the plant aligns with the grand industrial ambitions of Brazil’s President Luiz Inácio Lula da Silva, commonly known as Lula. Lula, like U.S. President Joe Biden, aims to revive manufacturing and create blue-collar jobs to support middle-class livelihoods. However, while Biden focuses on maintaining a technological advantage over China, Lula sees China as a benefactor and is seeking its help in boosting Brazil’s manufacturing sector.
The Growing Influence of China in Emerging Markets
China is increasing its investments in EV-related projects in various countries, including Brazil, Chile, Argentina, Indonesia, and Africa. Lula, recognizing China’s ability to provide aid and support, sought a detente with China to strengthen relations. During his visit to China, Lula personally lobbied BYD CEO Wang Chuan-Fu to reopen the former Ford plant. China’s control over private companies allows it to align their decisions with national priorities, making it easier for them to invest in emerging markets. In contrast, the U.S. government can only encourage investment through trade and tax policies, as direct foreign aid is often met with hostility in Congress.
Brazil’s Manufacturing Challenges and Lula’s Vision
Brazil’s manufacturing sector has faced challenges such as a chaotic tax system, poor infrastructure, and a decline in its contribution to the country’s gross domestic product. Lula, with his background in the auto industry, has a special affinity for manufacturing and aims to support Brazilian industry to regain its competitiveness. Ford was one of the first automakers to establish a presence in Brazil over a century ago, and the country has since become the world’s eighth-largest car producer. The former Ford plant in Bahia, Brazil, holds great potential for BYD to further its EV ambitions and create much-needed jobs in the region.
The Hope for a Brighter Future with BYD
With negotiations underway between BYD and Ford, there is hope for a fresh start for many former Ford employees. Diogo Damasceno, a metalworker who lost his job when the plant closed, sees BYD’s arrival as an opportunity for a better life. Damasceno, like many others, has been struggling to make ends meet since the closure, working as a delivery driver. He eagerly awaits BYD’s arrival in Bahia and hopes the company will consider hiring experienced workers like himself.