DETROIT (Reuters) – Ford Motor Co said on Monday it would close its three plants in Brazil this year and take on pre-tax taxes of about $ 4.1 billion as the COVID-19 pandemic boosted the company below capacity. of production.
Production will stop immediately at the Ford plants in Camaçari and Taubaté, with parts production continuing for several months to support stocks for after-sales. The Troller plant in Horizonte, Brazil, will continue to operate until the fourth quarter.
Ford officials said the action is part of the US carmaker’s $ 11 billion global restructuring, of which it accounted for $ 4.2 billion by the third quarter of 2020.
The closure of the plant affects about 5,000 employees, mostly in Brazil, Ford spokesman TR Reid said in a conference call with reporters. Industrial vehicle sales fell 26% in Brazil last year and are not expected to return to 2019 levels by 2023, with a focus on less profitable fleet sales, Ford said.
“We know these are very difficult but necessary actions to create a healthy and sustainable business,” Ford CEO Jim Farley said in a statement. “We are moving to a weak, easily active business model, ceasing production in Brazil.”
With the exit from production in Brazil, Ford keeps one factory in Argentina and another in Uruguay.
Ben Klayman’s report to Detroit; Editing by Franklin Paul and Matthew Lewis