Ford to stop producing cars in Brazil

The plants, which are located in Camacari and Taubate, will continue manufacturing some parts for a few months, while the plant in Belo Horizonte will continue to operate until the fourth quarter.

After operating for more than a century in Brazil, Ford has announced that it will cease production of cars at its plants in the country. The company said that this move is a part of its US$ 11 billion global restructuring strategy. The American carmaker also plans to achieve 8% global operating margins.

The plants, which are located in Camacari and Taubate, will continue manufacturing some parts for a few months, while the plant in Belo Horizonte will continue to operate until the fourth quarter. These closures will affect about 5,000 employees and Ford will stop selling cars like the EcoSport and Ka in South America once stocks are cleared.

Brazil is one of the worst hit countries by the outbreak of the Covid-19 pandemic. The country's industry vehicle sales dropped by 26% in 2020. Ford does not expect sales to rise to pre-Covid levels until 2023, which is one of the reasons for the company closing its manufacturing facilities in the country.

However, it will keep its product development center in Bahia, its proving ground in Tatui, Sao Paulo, and its regional headquarters in Sao Paulo operational. The company will also keep its plants in Argentina and Uruguay going.

Source - Reuters