Ford Motor will pay approximately 2.5 billion reais ($495 million) to the state of Bahia after deciding to shut its plants in Brazil, according to a report by O Estado de S. Paulo.
The payment aims at reimbursing Bahia for all subsidies the automaker has got since it started a plant in the town of Camacari in 2001, the report added, citing sources knowledgeable with the matter.
The automaker hasn’t commented on this report.
In January, Ford decided to shut down its three plants in Brazil and take pretax charges of about $4.1 billion. Brazilian President Jair Bolsonaro condemned the move of the automaker and attributed the decision to close its three plants in the country to the end of multibillion-dollar subsidies provided by the government.