Ford To Sell Brazilian Plant: Could 1,300 Workers Lose Their Jobs?

Ford (F) has reportedly entered into an agreement to sell its Sao Bernardo do Campo, Brazil, auto plant to Brazilian automaker CAOA after announcing that it was closing the plant as part of its global restructuring process. Ford made the announcement to end operations at the Brazilian plant as it signaled its departure from the heavy truck business in South America.

The news of the possible sale could potentially cut 1,300 jobs from the plant, according to the union that is representing the plant’s workers (via Reuters). The plant currently employs about 3,000 workers, which Sao Paulo state Governor Joao Doria worked quickly to find a buyer for to ensure jobs were kept in the city, the news outlet said.

Wagner Santana, president of Ford's workers’ union, told Reuters that it initially plans to keep about 800 workers at the plant with Ford retaining the remaining employees after 1,300 workers were let go. Santana also reportedly said that CAOA plans to pay 80 percent of the workers’ current Ford salaries, stating that is more than salaries paid in other states within the country.

According to Carlos Alberto Oliveira Andrade, CAOA's president and founder, “The objective is to make the factory profitable and productive, so it generates employment and riches.”

The Brazilian state of Sao Paulo has been attractive to manufacturers as the area offers generous tax incentives, which Doria said at a press conference would be conditional on CAOA keeping all the jobs at the plant.

"Preserve all jobs, that's the fundamental condition for a contribution from the state," Doria said.

Shares of Ford stock were up 0.93 percent as of 10:13 a.m. ET on Wednesday.