The Strategist

Ford shuts down all production in Brazil

01/12/2021 - 04:30

Ford Motor Company has announced that Ford Brazil will cease production operations in 2021.

Tony Webster
Tony Webster
"Ford Brazil will cease production at the Camaçari, Taubaté and Troller plants in 2021 as the COVID-19 pandemic will exacerbate ongoing industry downtime and low sales that have resulted in years of significant losses," the company said in a press release.

The company will continue to serve the Brazilian market with deliveries from Argentina, Uruguay and other markets, retaining its headquarters in São Paulo, a product development centre in Bahia and a testing facility in São Paulo.

Jim Farley, Ford's president and CEO, said in a statement about the shift to a lean business model and a focus on servicing electrified vehicles.

"By discontinuing production in Brazil, we are shifting to a lean business model focused on smaller assets... We will also accelerate the delivery of connectivity, electrification and autonomy technology benefits to our customers to effectively meet the need for cleaner and safer vehicles," Farley was quoted as saying in the document.

The company said it would immediately begin working with its unions and other stakeholders to develop a fair and balanced plan to mitigate the impact of the shutdown.