SAO PAULO – US automaker Ford stated Tuesday it becomes pulling out of the economic heavy truck commercial enterprise in South America, remaining a plant in Brazil employing 2,800 employees that have been running for half of a century.
The decision turned into made “as a part of a comprehensive redecorate of its global enterprise,” and after it decided that other alternatives, along with partnerships, could now not be viable, Ford stated in a declaration.
The affected manufacturing unit, in Sao Bernardo do Campo south of the megacity Sao Paulo, makes Cargo-version heavy vehicles, F-4000 and F-350 pickup vehicles and Ford Fiesta small vehicles.
Ford has been running the plant considering that October 1967.
“We understand this movement may have a first-rate effect on our employees in Sao Bernardo and we will be running carefully with all our stakeholders on the following steps,” said Ford’s South America chief, Lyle Watters.
He stated Ford became reason on retaining a “profitable commercial enterprise” and “a leaner, extra agile enterprise version.”
The organization said it was moving its consciousness in South America to lessen payroll prices, improve its offering of famous SUVs and pickups, and amplify partnerships which includes one it announced ultimate month with Volkswagen to jointly increase commercial vans and mid-sized pickups.
The closure of the Sao Bernardo do Camp factory “for the duration of 2019” would generate a one-off price of a few $460 million, maximum of it to terminate contracts with workers, sellers, and providers, the announcement said.
Ford says that the global, pre-tax price of its international reorganization might be $11 billion.
Last month, the United States automobile massive said a fourth-quarter lack of $112 million following a weak performance in China and Europe, in spite of higher sales.
That becomes a big slump compared to the $2.5 billion profit recorded a yr earlier.
Last year, Ford introduced it’d halt manufacturing of just about all sedans and small vehicles within the United States to shop $eleven billion.
It has also announced a restructuring of its European operations, including lots of ability task cuts.
Ford’s selection is a blow to the seasoned-enterprise schedule of Brazilian President Jair Bolsonaro, who are hoping to emulate US counterpart Donald Trump with policies to nurture investment and enterprise.
The nearby Metalworkers Union masking people on the Ford plant in Brazil stated they’d learned of the decision to shut it “with indignation and rage.”
Its chief, Wagner Santana, said in a statement that Ford “will pay the rate for the selection it is taking” and warned: “We are going to fight to have this decision reversed.”