• We are currently looking for experienced automotive journalists and editors to join our team.  Make $60k-$80k per year doing what you love. We are also looking for an experienced forum moderator to join our team. See details here. ×

Ford Could Reportedly Pull Out Of Select Markets In South America

Sponsored Links

According to one JPMorgan analyst, Ford Motor Company could stop doing business in certain South American markets in an effort to cut its losses in the region and improve its financial fitness. Bloomberg reports that JPMorgan auto analyst Ryan Brinkman met with Ford CFO Bob Shanks and President of Global Markets Jim Farley this week, and shortly after, penned a letter to investors in which he suggested that the automaker could make an exit from some countries in the region.

“Ford seems to be working on an out-of-the-box transformational plan to stanch what it deems as unacceptable losses in South America, which we suspect could be announced over the short-term,” the letter read in part. Brinkman says Ford could decide to work more closely with other automakers, “perhaps even via some sort of formal tie-up,” although fixing its poor financial performance in South America “could also entail selective exits from certain markets.”

Ford lost $587 million in South America through the first nine months of 2017, according to Bloomberg, and even that is an improvement over 2016, thanks to more favorable pricing and stronger sales. Brinkman says that industry-wide, most of the recovery in South America comes from low-margin fleet sales.

Sponsored Links

In an email to Bloomberg, Ford said that South America is important to its business operations, and the automaker will work to make its business there “operationally fit.”

Sponsored Links

Subscribe to Ford Authority
For around-the-clock Ford news coverage


We'll send you one email per day with the latest Ford updates.

It's totally free.

  • Want to see your Ford vehicle or build featured on Ford Authority? We welcome your submissions. See here for details. ×

Written by Aaron Brzozowski

Aaron Brzozowski is a writer and motoring enthusiast from Detroit with an affinity for '80s German steel. He is not active on the Twitter these days, but you may send him a courier pigeon.

Sponsored Links

Leave a Reply

Your email address will not be published. Required fields are marked *

Chinese Automaker Reveals Pickup With Obvious F-150 Raptor Resemblance

Ford Mustang Sales Decreased 3.3 Percent To 5,236 Units In October 2017