By Alzira Rodrigues | 8/18/23 | Translated by Jorge Meditsch

At least three Northeastern governors are joining forces to try to avoid the end of benefits given in the region to the automotive sector. The information was given by Bahia’s Jerônimo Rodrigues at a BYD event on Thursday night in São Paulo, SP.

“We are organizing”, he said. He told a joint offensive was already agreed upon with Pernambuco’s governor, Raquel Lyra, and Ceará’s governor, Elmano de Freitas. “We are preparing a document to address to the senators and the federal government explaining our position”.

Stellantis’ Automotive Complex, where Jeep and Fiat models are made, is located in Goiana, Pernambuco. Ceará was the place of the former Troller plant, owned by Ford, which is being sold.

Vehicle manufacturers headquartered in the South and Southwest regions are contrary to Northeast special tax regimen prorogation, while companies that operate there, such as Stellantis, defend the measure not approved by the Chamber and now being discussed by the Senate.

Anfavea’s president, Márcio de Lima Leite, said the association does not take sides in regional policies debate, as it has members from different Brazilian states.

At the tax reform text approved by the Chamber of Deputies, the extension of benefits to the region from 2025 through 2032 was rejected at the final vote. Northeastern governors now try to revive this proposal at the Senate.

“The extension does not need to be until 2032. But we need a breath beyond what is currently established because there are ongoing negotiations, such as those with BYD, which consider an extension over the current period”, explained Rodrigues. BYD’s board chairman in Brazil, Alexandre Baldyn, said the R$ 3 billion investment approved for Bahia could be reduced if the benefits are not kept for more time. BYD would operate in the former Ford facilities in Camaçari.

The American manufacturer returned the plant to the state of Bahia. Besides the Chinese manufacturer, Bahia’s government tries to attract to the state a bus manufacturer and other companies, such as an airplane components manufacturer currently operating in São José dos Campos, SP.

 

Alzira Rodrigues
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