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Originally Posted by JSH
Ford announced yesterday (12-Jan-2021) that they are shutting down all manufacturing operations in Brazil.
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They actually announced it locally on Monday.
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This will cost Ford $4.1 billion and 5,000 workers lose their jobs.
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Ford was looking for a handout from Brazilian government, which President Jair Bolsonaro refused to give. The operation in Camaçari only lasted because of tax breaks which expired in late-2020. And since Ford got out of the truck business in 2019, it lost some opportunities due to the increased demand for logistics due to a growth on the e-commerce in Brazil after the outbreak of the Chinese flu.
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Ford will supply the Brazilian market from plants in Argentina and Uruguay.
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The plant in Argentina currently makes only the Ranger, which honestly is the closest to the Model T in the Ford range at the moment. Besides being the model with the broader global presence, the Ranger also relies on a similar layout to the Model T as it has a body-on-frame with longitudinal engine and rear-wheel drive through a solid axle. Ford essentially has the same mindset since the Model T days, and that's why it's likely to shrink even more. When it comes to Uruguay, Ford has no plant there, and will contract Nordex to do the assembly of the Transit. Nowadays the Chinese-made Territory is already available in Brazil, and the Mustang is sourced from the United States, where the Bronco range is also scheduled to come from. It did surprise me Ford will also phase out operations at Troller, where it could eventually build regional variants of the Bronco and benefit from the off-road expertise of Troller.