Ford Manufacturing Leaving Brazil

Discussion in 'Ford' started by xcel, Jan 23, 2021.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    [​IMG] Lower sales, negative earnings, and the Pandemic lead to the decision.

    Wayne Gerdes – CleanMPG – Jan. 11, 2021

    [​IMG]

    While Ford will continue to offer product to Brazil and South America including the all-new Ranger pickup, Transit van and future electrified vehicles, Ford Brazil will cease production at Camaçari, Taubaté and Troller plants during 2021, as the COVID-19 pandemic amplifies persistent industry idle capacity and slow sales that have resulted in years of significant losses. New vehicles will be sourced from manufacturing plants in Argentina, Uruguay and other markets, as Ford Brazil ceases production operations in 2021.

    Ford will serve the region from its global product portfolio, including some of its most popular vehicle lines such as the all-new Ranger pickup built in Argentina, new Transit van, Bronco and Mustang Mach 1, and plans to accelerate the introduction of several new connected and electrified models. Ford maintains full customer support operations with sales, service, aftermarket parts and warranty support in Brazil and South America. Ford will also maintain its product development center in Bahia, its proving ground in Tatuí, São Paulo, and its regional headquarters in São Paulo.
    Ford is actively evaluating its businesses around the world, including in South America, making choices and allocating capital in ways that advance Ford’s plan to achieve an 8% company adjusted EBIT margin and generate consistently strong adjusted free cash flow. Ford’s plan calls for developing and delivering high-quality, high-value, connected vehicles – increasingly electric vehicles – and services that are affordable to an even broader range of customers and profitable for Ford. The company is moving quickly to: Turn around its automotive business – competing like a challenger while simplifying and modernizing all aspects of the company, and Grow by capitalizing on existing strengths, disrupting the conventional automotive business, and partnering with others to gain expertise and efficiency.

    Watters added that, in addition to the recently confirmed production of the next-generation of Ranger and the arrival of the Bronco, Mustang Mach 1 and Transit van, Ford plans to announce other all-new models, including a new plug-in vehicle. This includes expanding connected services and introducing new automated and electrified technologies to South America.

    Production will immediately cease at Camaçari and Taubaté in Brazil, with some parts production continuing for a few months to support inventories for aftermarket sales. The Troller plant in Horizonte, Brazil, will continue to operate until the fourth quarter of 2021. As a result, the company will end sales of EcoSport, Ka and T4 once inventories are sold. Manufacturing operations in Argentina and Uruguay and the sales companies in other South America markets are not affected.

    Ford will continue to facilitate possible reasonable alternatives for interested parties to take over available production facilities.

    In connection with this announcement, Ford currently expects to record pre-tax special item charges of about $4.1 billion, including about $2.5 billion in 2020 and about $1.6 billion in 2021. The charges will include about $1.6 billion of non-cash charges related to writing-off certain tax receivables and for accelerated depreciation and amortization. The remaining charges of about $2.5 billion will be paid in cash, primarily in 2021, and are attributable to separation, termination, settlement and other payments.
     
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  2. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    It's all about corporate profits.
     
    xcel and BillLin like this.

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