mobile-menu-icon
Ford Authority
Sponsored

Brazil President Slams Ford For Ending Production In The Country

Sponsored

As we reported earlier this week, Ford has made the decision to cease manufacturing in Brazil, a country that it has produced vehicles in for over a century. As one might imagine, that decision didn’t go over well with Brazil President Jair Bolsonaro, who criticized the move and alleged that the automaker was looking to obtain tax breaks and other subsidiaries prior to its departure.

“People complained about the Ford factories,” Bolsonaro told his supporters, according to Bloomberg. “I’m sorry, but I will no longer keep spending your money to support their factories. The factory closed due to competition, there is no more subsidy from us.”

Bolsonaro has thus far pledged to boost Brazil’s economy by implementing business-friendly policies and noted that the government has given Ford almost 20 billion reais ($3.77 billion) in assistance in recent years.

Ford CEO Jim Farley said that Ford’s decisions to close its Brazilian plants were “necessary actions to create a healthy and sustainable business.” Lyle Watters, President of Ford South America and International Markets Group, said that the automaker “has made significant progress in transforming our operations,” but noted, “the continued unfavorable economic environment and the additional pressure caused by the pandemic have made it clear that much more was needed to create a sustainable and profitable future.”

Production will be stopped immediately in Camaçari and The Ford Taubaté Engine Plant, while the Troller plant in Horizonte will continue to operate until the fourth quarter of 2021. As a result, Ford will end sales of the Ford EcoSport, Ka, and Troller T4 as soon as inventories are exhausted. The automaker has said that it will work closely with unions and other partners to develop a fair and balanced plan to minimize the impacts of the shutdown.

Ford will continue to provide sales, services, spare parts, and warranty coverage for its customers in Brazil and South America, and will also maintain its Product Development Center in Bahia, the Campo de Provas, in Tatuí (SP), and its regional headquarters in São Paulo.

We’ll have more on this as soon as it’s available, so be sure and subscribe to Ford Authority for the latest Ford business news and ongoing Ford news coverage.

Sponsored

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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.

Sponsored

Comments

  1. Alexander

    I am a little confused. Is Ford just shutting down the plants? or, are they shutting down operation altogether including sales, and dealers?

    Reply
    1. Brett Foote

      Manufacturing only

      Reply
    2. Marcello

      Local manufacturing only!
      It will also import the Ranger from Argentina, Transit from Uruguay, Edge from Canada, Mustang and in the future Escape Hybrid and Bronco from the USA and Bronco Sport and Maverick from Mexico.

      Reply
  2. THOMAS john WILSON

    Welcome to the north american auto industry el-president. No tax breaks we leave you. Entice the communist they will steal your tech and provide cheap labor. Then sell their tech stolen cars back to you. Why do you think they moved from America to yours. Our lazy work force turned union and the cost went up so to produce cars cheaper they moved south and yet kept the higher prices to make a bigger profit.

    Reply
    1. Marcello

      Despite the high Brazilian tax burden, many say that the profit margin obtained there is higher than the equivalents produced in other countries.
      It is not surprising that during the crisis that the USA went through in 2008, the Brazilian subsidiary sent all the profits and helped to sustain the operations of the headquarters of GM and Ford.

      Reply
      1. Ethan Stark

        You are right. Profit margins in Brazil are very high, but their president is a disaster. Instability is not good for business…

        Reply
        1. Marcello

          I am Brazilian and I agree with practically everyone! It is unanimous that Bolsonado is an irrational being!
          Several requests for impeachment have already been filed due to the various crimes of responsibility that the same has done. Many who voted for him have already regretted it.
          But we also couldn’t expect anything from a being who has been a deputy for over 20 years and has not presented any project that has any value for society.

          Reply
  3. Mark Bedel

    Sounds like a great way to keep margins nice and strong…and maybe boost that stock price down the road…

    Reply
  4. Marcello

    Ford’s situation has reached this point not only because of the economy or low sales, but mainly due to administrative errors by the subsidiary and the parent company. So much so that Ford is having to restructure itself globally and leaving some markets.
    Hyundai started producing in Brazil in 2012 3 models and soon started to grow, with its cars being among the 3 best sellers. Quickly becoming 4th place. Ford was in danger of losing its position to Toyota and Renault, which are selling similar numbers and are in 6th and 7th place.
    With the current strategy of focusing on more profitable segments, such as SUVs, crossovers and pickups, FCA should take as an example, which started producing Jeep vehicles in 2015 and is currently in 8th place. And even with the pandemic, it announced the maintenance of investments for local production of new models.
    Since 2014, Ford has not announced any investment plans for the subsidiary, while all the competition did and renewed its models, with more security and technology.
    Shortly after the announcement of the closure, it was reported that 4 Chinese automakers showed interest in acquiring the factories.

    Reply
  5. Jeff

    Isn’t that the same guy who said that the COVID vaccine will turn you into a crocodile?

    Reply
    1. Ethan Stark

      hahahaha it’s him.

      Reply
    2. Marcello

      What a shame I have to be Brazilian right now. Being represented worldwide by an irrational being!
      At least now, we are taking a little pleasure in seeing the various failures he has been committing.
      He said that the Chinese vaccine would transform vaccinees into crocodiles, even though a very respected Brazilian institute had done all the tests necessary for its use.
      Now, he is having to settle for it, because the person responsible for making the investments and bringing her to Brazil, was one of his greatest opponents, the governor of the state of São Paulo, who started the vaccination before the Ministry of Health itself.

      Reply
  6. GeorgeS

    More proof that the worlds auto production is well over capacity. Too many vehicles, not enough buyers, good for the consumer but the oldest factories (companies) usually have a higher cost structure. Time to close the doors, no profits. Ok, Chinese companies are interested and maybe want to manufacture vehicles, the same people will be hired at 1/2 their former pay scale.

    Reply

Leave a comment

Cancel
Sponsored