DaimlerChrysler To Close Brazil Facility Permanently.(Brief Article)

DaimlerChrysler AG said it was closing a 190-worker plant in Brazil built under a government subsidy program. The decision to suspend production at the Campo Largo plant in the southern state of Parana was made in January as part of the company's $4 billion global turnaround plan which included 26,000 job cuts worldwide.

DaimlerChrysler built the plant, which produces the Dakota pickup, under a Brazilian government drive to attract carmakers to the region with tax breaks and help with infrastructure costs. The automaker stopped production at the plant in April. Production began in July 1997.

Local Valor Economico newspaper said DaimlerChrysler was the first automaker to pull out of the government subsidized region and would have to pay tax incentives back to the local authorities.

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