Ford pays US$ 65 million penalty to San Luis Potosi state for cancelled plant
Ford Motor Co. paid a US$ 65 million penalty for a canceled project to build a local auto plant, weeks after the automaker announced it would instead start production in China.
The central state of San Luis Potosi announced the money will be used to cover the state’s expenses in preparing the 690-acre area for construction.
“The company paid US$ 65 million, which is the maximum stipulated in the agreement, to cover expenses incurred,” San Luis Potosi Governor Juan Manuel Carreras said in a statement.
“The negotiation led to an agreement by the parties and avoided arbitration proceedings and the generation of additional costs and time,” Carreras added.
The state government will now be the owner of this property to be used as a tool to promote investment and job creation.
The land of 220 hectares has access to highway 80, railway spur, natural gas network, water treatment, among other infrastructure.