Ford Ending Manufacturing in Brazil, Closing Three Plants
Ford Motor Company announced on Monday that it will end vehicle production in Brazil this year, part of sweeping changes across South American operations. The moves are part of a global restructuring effort spearheaded by new CEO Jim Farley.
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Production ends immediately at the automaker’s Camaçari and Taubaté manufacturing facilities, though some parts production will continue until inventory needs are met. Ford will also close the Troller plant in Horizonte until the fourth quarter of this year, effectively ending sales of the EcoSport, Ka, and Troller T4. Ford also closed its São Bernardo do Campo plant in Brazil in 2019
Farley reassured customers that the closures will not jeopardize the automaker’s presence in South America. While these facilities will close, Ford will continue to operate its product development center in Bahia as well as its proving ground and regional headquarters in São Paulo. Ford says that no other South American markets will be affected.
“With more than a century in South America and Brazil, we know these are very difficult, but necessary, actions to create a healthy and sustainable business,” said Farley. “We are moving to a lean, asset-light business model by ceasing production in Brazil and serving customers with some of the best and most exciting vehicles in our global portfolio.”
Ford SA President: New vehicles coming
Ford South America and International Markets Group President Lyle Watters says that the company plans to announce a new plug-in hybrid vehicle for South America. Watters notes that the continent will receive key products like the all-new Ranger, Bronco, and Mustang Mach-E. Farley added that the decision will speed up the process of “bringing our customers the benefits of connectivity, electrification, and autonomous technologies.”
The closures affect around 5,000 jobs in Brazil. Watters says that Ford will work with employees and unions to create plans that will benefit workers and diminish the effects.
Ford says that closing manufacturing operations in Brazil will cost around $4.1 billion, including $1.6 billion in pre-tax special item charges this year.