Back in January, Ford made the decision to cease its manufacturing operations in Brazil, a move that has led or will lead to the closure of three plants in the country – the Troller plant in Horizonte, the Ford Taubaté Engine Plant, and the Camacari plant, which produced the Ford EcoSport and Ford Ka. That decision has drawn the ire of Brazil President Jair Bolsonaro and led to a number of financial repercussions, the latest of which is a payment of 2.5 billion reais ($495 million USD) to the state of Bahia, where the Camacari plant was located, according to a new report from Reuters.
That payment, which will compensate Bahia for the subsidies Ford has received since opening the plant in 2001, is part of the reported $4.1 billion Ford must spend to actually end its manufacturing commitments in Brazil. As Ford Authority reported last month, Ford Brazil has lost a total of $7.8 billion over the last decade, which when coupled with these payments, totals a loss of nearly $12 billion in the country over that time frame.
Ford ceased production at the Taubaté and Camacari plants immediately after making its announcement, which led to a number of new EcoSport and Ka models being scrapped. The Horizonte Troller plant will continue to operate until the fourth quarter of 2021. Additionally, roughly 160 of Ford’s 283 Brazilian dealerships are now looking to rebrand or close following the restructuring.
Meanwhile, Ford Brazil continues its massive overhaul in an effort to turn things around, which includes the introduction of new products to its lineup. These include the new Ford Bronco, as we recently reported, as well as the Ford Mustang Mach 1, of which an initial batch sold out quite quickly, Ford Bronco Sport, and the next-generation Ford Ranger.