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Ford Will Make Additional Cuts To Its South American Business

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It’s no secret that Ford’s South American business has been fledgling for a while. The automaker announced that it would cease production in Brazil back in January, a move that drew the ire of government officials and led to the destruction of a number of unfinished models. Instead, it will import a number of models from other countries into South America, as Ford Authority reported earlier this year. But it appears that Ford isn’t done making cuts to its South American business just yet.

The automaker announced at its Capital Markets Day presentation last week that more cuts are coming in South America, but stopped short of providing any additional details. This decision doesn’t come as a huge surprise, however, as Ford has lost a whopping $12 billion in Brazil alone over the last decade, as Ford Authority recently reported.

In spite of securing $2.6 billion in government subsidies, Ford still loses around $2,000 on every car it sells in Brazil, a competitive market with high taxes and labor costs. The automaker is in the midst of fine-tuning its strategy to turn its South American operations around, which includes adding a host of new models to its lineup including the Ford Bronco, as we recently reported, Ford Bronco Sport, Ford Mustang Mach 1, of which an initial batch sold out quite quickly, and the next-generation Ford Ranger.

As part of this restructuring, roughly 160 of Ford’s 283 dealers in Brazil are currently in the process of rebranding or closing altogether as sales continue to decline. Opportunity certainly exists in the South American market, as a host of other automakers do well there, but Ford will need to overhaul its strategy and apparently make more painful cuts before it can turn a profit in the region.

We’ll have more on Ford’s South American strategy soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.

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Written by Brett Foote

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.

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4 Comments

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  1. Does this mean the Troller is going to stop production? After ford purchased the troller, I thought they may actually import a few into the US, but instead, ford acted as if the bronco was a “New idea”. Anyone looking at the Troller (before and after they were purchased by ford) can see the “visionaries” that “designed” the new bronco’s may have seen a troller at least once in their lives. I hope ford sells off the troller name and production, to someone that will continue to make these vehicles and figure out how to import a few into the US-hopefully with the diesel and manual trans options!

    • According to Ford, Troller production will continue until the end of the year.
      I believe that Ford never opted to export Troller models due to low production and the option not to introduce safety equipment, which would demand large investments. Some investors have already shown interest in buying Troller and are under negotiation.

      • Can you see the “similarity” between the Troller and the “all new” Bronco? It’s amazing that the fan boys believe the “new” bronco started with a blank slate, from the ground up etc. Low production? The Troller has always been a low production vehicle, it was when ford purchased the company, to latter say, “Well it’s low production we’d better sell it” makes me think someone at ford was smoking crack.

        • From an aesthetic and proposal point of view, both are quite similar. But in terms of quality and equipment, they are very distant.
          Ford purchased Troller only to obtain the state and federal tax breaks that the brand owned and later build a new plant in another nearby state with the same exemptions.

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