Ford has announced its plans to close three of its factories in Brazil as the coronavirus pandemic has resulted in slow sales in South America. Approximately 5000 workers will lose their jobs as a result of the move, and according to Ford, the closures will incur once-off charges of $4.1-billion.
“Ford Brazil will cease production at Camacari, Taubate and Troller plants during 2021, as the Covid-19 pandemic amplifies persistent industry idle capacity and slow sales that have resulted in years of significant losses,” the company said in a statement. “With more than a century in South America and Brazil, we know these are very difficult but necessary, actions to create a healthy and sustainable business.”
New vehicle sales in Brazil dropped by over 26% in 2020. Of this, car sales dropped by 28.57% and the sale of buses dropped by 33%.
Ford will continue to serve its South American clients with cars sourced from Argentina, Uruguay, and other markets. It will still retain its product development centre in Bahia, as well as its regional headquarters in Sao Paulo.
The South African Ford market will not be affected by the closures.