SAO PAULO Nov 29 The local unit of Ford Motor
Co will pay almost 217 million reais ($63.8 million) to
Brazil's state of Rio Grande do Sul after the parties reached a
settlement regarding a law suit, newspaper Folha de S. Paulo
reported on Tuesday.
According to the report, the claim was related to Ford's
cancellation, in 1999, of a project to build a manufacturing
facility in Brazil's southernmost state. Instead, Ford decided
to build the factory in the state of Bahia.
Cash-strapped Rio Grande do Sul will use the money to help
pay state employees, Folha reported.
($1 = 3.4009 reais)
(Reporting by Ana Mano; Editing by Mark Potter)