1 Min Read
SAO PAULO, Nov 29 (Reuters) - 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