Ford will cease production in Brazil after more than a hundred years

Ford will cease production in Brazil after more than a hundred years

The American carmaker Ford announced late Monday evening that after more than 100 years in the country it will stop production in Brazil and close its three remaining plants there. Ford has made consecutive losses in Brazil in recent years, which it says will lead to pre-tax depreciation of approximately $ 4.1 billion (€ 3.37 billion). Car director Jim Farley said it was a "very difficult but necessary" decision.

Thousands of employees will pay for it

The Brazilian Ministry of Economy deplored Ford's decision, which it said was at odds with the strong recovery seen in most industries in the country. The Brazilian news website G1 reported that the closure of the plants will affect thousands of employees. The Camacari and Taubate plants are due to close immediately, while production at the Troller subsidiary in Horizonte is set to continue for several more months. The Taubate and Camacari unions called for demonstrations on Tuesday.

Ford has problems abroad

Ford has had problems in its overseas operations for some time and only makes profits in the US domestic market. Apart from Europe, the main problem for the American company is South America, where it reported an operating loss of 108 million USD in the previous quarter. In 2019, the carmaker celebrated 100 years of operation in Brazil.