Ford opens new Brazil factory despite falling demand

Ford has opened a $1.3 billion car factory in Brazil's north eastern state of Bahia.

The move comes amid dwindling demand and production halts in other Brazilian facilities.

The factory in Camacari is scheduled to produce 250,000 vehicles a year and will employ 5,000 people.

In September, Ford said it would suspend part of its production in Brazil from October 15 on, sending workers on a paid leave as sales are slow.

Brazilians have been buying fewer cars as economic growth slows due to an energy crisis and global economic downturn.

An industry association said that overall sales of cars, trucks and buses fell to 130,814 in August, down 7.6% from a year earlier.

Ford is currently Brazil's fourth-biggest car seller.

The company's move followed similar stoppages or production cuts by Volkswagen, Renault, Fiat, Honda, Toyota and Daimler-Chrysler in Brazil.