Ford is in the process of a reorganization in South America that will have a major impact on both its employees and the car offering. Ford Brasil will end three Brazilian factories later this year.
Ford Brasil announced in 2019 the closure of its factory in São Bernardo do Campo, Brazil, in São Bernardo, a decision that resulted in, among other things, the Cargo and F350 and F-4000 pickups along with the Fiesta hatchback. would no longer be built in the South American country. Now Ford Brasil is reporting that it will also close the gates of its factories in Camaçari (Bahia), Taubaté (São Paulo) and Horizonte (Ceará) this year. Ford’s administrative headquarters in South America, along with the Product Development Center and its test site, all located in Brazil, will be maintained.
The reorganization in South America should provide Ford with “a more flexible and streamlined business model,” says CEO Jim Farley. Ford Brasil promises to sit down with the unions and others to deal with the consequences for the thousands of employees involved. The company says the introduction of new models has improved the financial situation somewhat over the past year, but that persistent adverse economic conditions, partly caused by the pandemic, prompted the company to shut down its factories.
Troller T4 TX4
The factories in Camaçari and Taubaté will close their doors immediately. Ford’s Horizonte plant, where it produces the Troller TX4, will remain in operation until the fourth quarter of this year, but after that, the Wrangler-esque off-roader will close. The EcoSport and Ka are therefore no longer produced in Brazil with immediate effect. The brand will continue to supply these models while stocks last.
Ford EcoSport Storm
The announced closure of Ford’s Brazilian factories has major consequences for Ford’s South American presence, although the brand is not leaving the continent as mentioned. Among other things, it still builds passenger cars and commercial vehicles in Argentina and Uruguay and also continues to export cars from other parts of the world to South America. The South American Ford range, which varies from country to country, will soon include the Ranger, Transit, Bronco and Mustang Mach 1. According to Ford, the emphasis of the model range is increasingly on electrified SUVs, pick-ups and company cars.
Ford Brasil expects the closure of the factories to result in a one-off cost of 4.1 billion dollars, about 3.37 billion euros.