Ford to shutter Brazil car-making operations

DETROIT/SAO PAULO • Ford Motor Co. said on Monday it will close its three plants in Brazil this year and take pretax charges of about US$4.1 billion as the COVID-19 pandemic amplified the company's under-use of its manufacturing capacity.

Production will cease immediately at Ford's plants in Camaçari and Taubaté, 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.

Ford officials said the action was part of the US$11-billion global restructuring previously forecast by the U.S. automaker, of which it had accounted for US$4.2 billion through the third quarter of 2020. Ford shares closed up more than three per cent.

The plant closures affect about 5,000 employees, mostly in Brazil, Ford spokesman T.R. Reid said on a conference call with reporters.

Industry vehicle sales fell 26 per cent in Brazil last year and are not expected to rebound to 2019 levels until 2023 with an emphasis on less-profitable fleet sales, Ford said.

Ford, which has operated in Brazil for more than a century, has begun discussions with its unions and others about the layoffs.