DETROIT (Reuters) – Ford Motor Co. on Monday said it would close its three plants in Brazil this year and tax levies of about $ 4.1 billion as the COVID-19 pandemic strengthens the company using its manufacturing capability.
Production will be stopped immediately at Ford’s plants in Camaçari and Taubaté, and some parts production will continue for several months to support the stock for sale to the market. The Troller plant in Horizonte, Brazil, will continue until the fourth quarter.
Ford officials said the move was part of the $ 11 billion global restructuring previously predicted by the U.S. carmaker, which accounted for $ 4.2 billion in the third quarter of 2020.
Ford spokesman TR Reid said during a conference with reporters that the factory shutdown will affect about 5,000 employees, mostly in Brazil. Sales of industrial vehicles fell by 26% in Brazil last year and are expected to decline by 2023 to 2023, with the emphasis on less profitable fleet sales, Ford said.
“We know it is a very difficult, but essential, step to create a healthy and sustainable business,” Ford CEO Jim Farley said in a statement. “We are moving towards a sleek, asset-light business model by stopping our production in Brazil.”
With the exit of production in Brazil, Ford retains one plant in Argentina and another in Uruguay.
Reporting by Ben Klayman in Detroit; Edited by Franklin Paul and Matthew Lewis