After 101 Years Ford Ends Production in Brazil

Ford ended its manufacturing activities, as the brand itself said in a note, nationwide. After 101 years, the American automaker closes the factories in Camaçari-BA, Taubate-SP and Horizonte-CE, where Troller is located.

Ford says the closure is due to Covid-19, which “expands the industry’s persistent idle capacity and reduces sales, resulting in years of significant losses.”

Jim Farley, Ford President and CEO, says: “Ford has been present in South America and Brazil for more than a century and we know that these are very difficult, but necessary, actions to create a healthy and sustainable business” .

He adds: “We are moving to an agile and lean business model by ending production in Brazil, serving our consumers with some of the most exciting products in our global portfolio. We will also accelerate the availability of the benefits brought by connectivity, electrification and autonomous technologies, effectively meeting the need for more environmentally efficient and safer vehicles in the future. ”

For Ford, there is only the Product Development Center, in Bahia, as well as the Proving Ground, in Tatui SP. The company’s headquarters moves to Sao Paulo, after the end of Taboao. The Troller will operate until the fourth quarter of 2021.

After 101 years, Ford ends production in Brazil

Lyle Watters, President of Ford South America and International Markets Group, says: “Our dedicated South American team has made significant progress in transforming our operations, including discontinuing unprofitable products and exiting the truck segment.”

Watters reiterated: “In addition to reducing costs in all aspects of the business, we launched Ranger Storm, Territory and Escape in the region and introduced innovative services for our customers. These efforts have improved results over the past four quarters, however the continuity of the unfavorable economic environment and the additional pressure caused by the pandemic have made it clear that much more was needed to create a sustainable and profitable future. ”

Ford will have only the General Pacheco plant, which is expected to make the next generation of Ranger. For employees, Ford said the following. “We will work closely with unions, our employees and other partners to develop measures to help address the difficult impact of this announcement,” continued Watters. Around 5,000 will be fired.

“I want to emphasize that we are committed to the region for the long term and will continue to offer our customers extensive assistance and sales, service and warranty coverage. This will become evident when we bring to the market an exciting and robust line of connected and electrified SUVs, pickup trucks and commercial vehicles, from within and outside the region. ” completed Watters.

Ford maintains the launches scheduled for 2021, reinforcing that the range will now be connected products, including Bronco, Mustang Mach 1 and Transit, the latter assembled in Uruguay by Nordex. In the official note, the brand says: “Ford will end sales of EcoSport, Ka and T4 as soon as stocks are exhausted”.

Ford expects an impact of approximately $ 4.1 billion in dismantling expenses, including about $ 2.5 billion in 2020 and $ 1.6 billion in 2021. About $ 1.6 billion it will be related to the accounting impact attributed to the write-off of tax credits, accelerated depreciation and amortization of fixed assets. Approximately US $ 2.5 billion will directly impact the automaker’s cash, most of which are related to compensation, terminations, agreements and other payments.

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