Ford announced today that it will stop producing and selling heavy trucks in South America, which will mean the cessation of production at the assembly plant that the company has in the Brazilian town of São Bernardo do Campo.
The cessation of production will occur this year, the automaker said in a statement, which will stop marketing the Cargo, F-4000 and F-350 models, along with the Fiesta tourism, once the existing inventories are finished.
Ford explained that the decision is the result of the global restructuring of the company and that it takes place after months of searching for alternatives “including possible alliances and the sale of the operation”.
The company added that the operations “would have required significant capital investments to meet market needs and increase regulatory costs without a viable path to profitability.”
The decision will involve a charge of 460 million dollars, including about 100 million dollars, for “amortization and accelerated depreciation”; the remaining 360 million dollars will be payments to employees, concessionaires and suppliers.
“We know that this action will have a great impact on our employees in São Bernardo and we will work closely with key stakeholders on the next steps,” Ford South America president Lyle Watters said in the note.
Watters added that “Ford is committed in the South American region to the construction of a sustainable and profitable company with a revitalized offer of products, an excellent experience for customers and a more adjusted and agile business model.”
The cessation of production in São Bernardo do Campo and the end of the sale of heavy trucks in South America is in addition to other measures adopted in recent months by the manufacturer to try to return to profitability in the region.
Ford had previously announced a reduction in wage costs in the region of more than 20% and the cessation of production of the Focus model in Argentina. (EFEUSA) .-