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Reuters: Brazil’s $12 Billion iPad Deal Is “In Doubt”
According to Reuters, Brazilian officials are claiming the $12 billion deal between Brazil and Foxconn, maker of the iPad, is “in doubt” because of a lack of an agreement on tax breaks, work conditions, and other “crazy demands” by Foxconn. It appears the talks between the local government and Foxconn have been difficult, mainly due to Brazil’s high taxes and non-skilled workers that don’t meet Foxconn’s expectations. These demands may also include priority treatment at Brazilian customs, Reuters reports.
We’re dealing with a lot of issues, like the (Taiwanese) trying to figure out how to do business in Brazil … and Brazil figuring out how to produce these complicated products,” a second government official told Reuters.
Maybe we will end up starting with something smaller.
The deal between Foxconn and Brazil was announced back in April by Brazilian’s President Dilma Roussef, with production set to begin in July. The date was then pushed back to November, and more recently Brazilian Minister of Science and Technology, Aloízio Mercadante, said that the new factory was “ready” and making iPads that would start shipping in December.