Opinion – Eduardo Sodré: Rui Costa announces BYD factories in Bahia and surprises Chinese automaker

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The Chinese automaker BYD was surprised this Friday (28) by a post made by the governor of Bahia, Rui Costa (PT), on his social networks, two days before the second round by the state government.
The current governor supports Jerônimo Rodrigues (PT), who obtained 49.45% of the valid votes in the first round, compared to 40.80% for ACM Neto (União Brasil).

“I signed, together with BYD Auto, the largest manufacturer of electric vehicles in the world, a protocol of intentions for the installation of three factories here in Bahia”, says the text published by the governor. “The negotiation will generate more than 1,200 direct jobs, in addition to boosting industrial and commercial development in the state.”

The possibility of the Chinese company settling in Bahia had been speculated since 2021, when Ford closed its activities in its industrial complex in Camaçari. However, no official statement had been made by the manufacturers involved.

BYD’s communication sector said that the protocol of intent was in fact signed between the automaker and the Bahian government, but there are still pending issues under analysis. The automaker said it will not comment on the matter at the moment.

Ford, which was not directly mentioned in the posts, will also not comment on the announcement made by the governor of Bahia.

According to Rui Costa, there is a possibility that the new BYD factories will be installed in the Camaçari industrial complex, but this has not yet been defined.

BYD’s surprise is due to the political moment: as they are multinational companies, the automakers installed in Brazil avoid making any type of announcement during election periods.

Throughout the campaign for the government of Bahia, candidate ACM Neto (União Brasil) has said that he would take another stance in the case that involved the closure of the Ford plant. The announcement made today by Rui Costa would be a response to these criticisms.

The current governor supports Jerônimo Rodrigues (PT), who obtained 49.45% of the valid votes in the first round, compared to 40.80% for ACM Neto.

The governor says that the implementation of the new units of the Chinese automaker will begin in June 2023, with the production of chassis for electric buses and trucks, in addition to both electric and hybrid passenger vehicles. There will also be an area for processing lithium and iron phosphate, materials used in batteries.

Conversations between Ford and BYD began three years ago, when the Chinese automaker showed interest in acquiring the factory in São Bernardo do Campo (Greater São Paulo). This unit ended production on October 30, 2019.

In the end, the American automaker closed a deal with the construction company São José, specialized in logistics projects, and the company Fram Capital, focused on resource management.

Despite not producing more cars in Bahia, Ford maintained investments in the state. The Camaçari-based Development and Technology Center is one of nine that the automaker has in the world and is currently focused on global projects.

One of the projects in progress is the new line of electric vehicles from Lincoln, Ford’s luxury division in North America.

BYD maintains an assembly line for electric buses in the city of Campinas (São Paulo countryside). The manufacturer also sells electric-powered passenger vehicles in Brazil, such as the Tan SUV.

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