Reviews Ford stops production in Brazil

The second largest US automaker, Ford, is cutting its troubled business in South America.

© Andre M. Chang / ZUMA Wire / dpa Ford sold 119,454 cars in Brazil last year - a decrease of 39.2 percent compared to 2019.

The group announced the historic decision on Monday after around 100 years of presence and finally, after years of losses, to stop production in Brazil and to close its three remaining plants there. This will lead to depreciation of around 4.1 billion dollars (3.4 billion euros) before taxes. CEO Jim Farley spoke of a "very difficult but necessary" decision.

Brazil’s Ministry of Economic Affairs regretted Ford’s decision. This contradicts the strong recovery seen in most of the country’s industries.

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Production will cease immediately at Ford ’s plants in Camaçari and Taubaté, with some parts production continuing for a few months to support inventories “We are moving to a lean, asset-light business model by ceasing production in Brazil .” Ford officials said the plant closures are part of the

SAO PAULO — Ford Motor said on Monday it will close three plants in Brazil and stop producing automobiles in the South American country. The company said in a statement it will cease production immediately at the factories “as the COVID-19 pandemic amplifies persistent industry idle capacity

According to a report by the Brazilian news portal "G1", thousands of employees are affected. The plants in Camaçari in the state of Bahia and Taubaté in the state of São Paulo are to be closed immediately, and production of the Troller division in Horizonte in the state of Ceará is to continue for a few more months. The Taubaté and Camaçari metalworkers' unions called for demonstrations today.

Ford has had problems internationally for a long time and recently only earned money in the US home market. In addition to Europe, South America is a major problem area for the US company, with an operating loss of $ 108 million in the past quarter.

In Brazil, Ford sold 119,454 cars last year, according to data from the National Association of Automobile Manufacturers (Anfavea), to which "G1" refers - a decrease of 39.2 percent compared to 2019 and greater than that of the entire automotive sector in Brazil in the year. Ford says it wants to keep its regional headquarters in São Paulo, customer service and sales activities in South America's largest economy are to be retained, and vehicles will be imported from Argentina and Uruguay in the future.

In 2019, the automaker had already closed its oldest plant in Brazil in São Bernardo do Campo in the greater São Paulo area, which is more than 50 years old. Among other things, Ford was the first major car manufacturer in Brazil before Volkswagen and celebrated its 100th anniversary in the country in 2019. The city of Fordlândia in the state of Pará, named after the US car king Henry Ford, is still reminiscent of his attempt from the 1920s to become more independent of rubber deliveries from Asia and to set up plantations in the Amazon region. The project turned out to be a flop, and Ford withdrew again in 1945.