Ford plans $1.6 bln Brazil investments-executive

20 November 2009 @ 11:51 am EDT

Ford Motor Co, the No. 2 U.S.-based automaker, plans to invest 2.8 billion reais ($1.61 billion) in Brazil to boost output at two plants by 20 percent, a top company executive said on Friday.

The Ford Motor Co's logo is seen on top of the Ford Motor Company World Headquarters in Dearborn, Michigan, October 26, 2009. Union workers at Ford Motor Co's Kansas City assembly plant overwhelmingly rejected proposed contract changes that include a "no-strike" provision on wages and benefits, the local president said on Monday. Ford's 2007 contract with the UAW covers some 41,000 workers at plants across the United States.

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The company expects the investments to create 1,000 jobs and increase output at plants in northeastern Brazil to 300,000 cars from 250,000 now, said Marcos de Oliveira, the company's chief executive for Brazil and the Mercosur region. Oliveira made the comments at an event with Brazil's President Luiz Inacio Lula da Silva and other government officials in the country's northeastern state of Bahia.

($1=1.737 reais)

(Reporting by Peter Murphy; Writing by Elzio Barreto; Editing by Lisa Von Ahn)

Ford plans $1.6 bln Brazil investments-executive

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