Ford declares halting of manufacturing operations in Brazil

Published:

On: Jan 2021

The topmost automaker of the United States, Ford Motor said that it will halt three plants in Brazil and meanwhile, close automobiles production in the South American nation where it has been working since 1919. The company said in a statement that it will stop automobiles production at the factories because the coronavirus pandemic intensities industry unproductive capacity and lower sales that have outcome in years of crucial losses.

As two units of automaker will be stopped, nearly 4,8000 employees between them are impacted. It further said that it will maintain headquarters of South America, product implementation center as well as demonstrating grounds in Brazil.

The chief executive officer and president of Ford Motor, Jim Farley said that with operating more than a century in the land of South America and Brazil, we know closing these plants are extremely hard, but significant actions to generate a powerful and worthwhile business. We are transferring to a poor business model by closing automobiles production in Brazil and also offering our customers with some of the perfect and extremely fascinating cars in worldwide portfolio of the company.

The decision of the American automaker is an another blow to Brazil whose economy has been impacted since 2014, diminishing further amid the COVID-19 pandemic. The unemployment rate of the nation is moving to 15 percent, which economists considered as a worst figure that highly miscalculated. Ford also stated that its customers from Brazil will have their requirements that met with vehicles which have been sourced from Uruguay, Argentina and other zones.

The decision of the carmaker caused political disturbance in Brazil. The lower house speaker of the country Rodrigo Maia tweeted that the terminations are an indication of the deficiency of the Brazilian government. The communication secretary of president Jair Bolsonaro, Fabio Wajngarten, said that Ford’s determination has no any relation with economic, authorize and political situation of Brazil.

He said that who says otherwise is misleading and seeks the spotlight. Terms of the association of carmakers in Brazil said that Ford closed last year as the 5th highest selling frim of the automobile sector, along with an industry share of seven percent.