Ford to close Brazil manufacturing operations
The company is closing two plants immediately and a third later in the year, as part of a restructuring plan meant to cut costs and increase efficiency.
Ford Motor Co. is closing three plants and stopping automobile production in Brazil, a country where it has been operating since 1919.
In a Jan. 11 news release, Ford said it will cease production immediately at the Brazilian factories – located in Camaçari, Taubaté, and Troller – “as the COVID-19 pandemic amplifies persistent industry idle capacity and slow sales that have resulted in years of significant losses.”
“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 Jim Farley, Ford president and CEO. “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. We will also accelerate bringing our customers the benefits of connectivity, electrification and autonomous technologies to efficiently address the need for cleaner and safer vehicles well into the future.”
Production will cease immediately at Camaçari and Taubaté in Brazil, with some parts production continuing for a few months to support inventories for aftermarket sales. The Troller plant in Horizonte, Brazil, will continue to operate until the fourth quarter of 2021. As a result, the company will end sales of EcoSport, Ka and T4 once inventories are sold.
The automaker also said it will keep its South America headquarters, product development centre and proving grounds in Brazil.
Manufacturing operations in Argentina and Uruguay and the sales companies in other South America markets are not affected, Ford said.