By Ben Klayman 2 Minutes Read DATA IMAGE: The company logo design of Ford is seen at Brussels Electric motor Program, Belgium January 9, 2020. REUTERS/Francois Lenoir DETROIT( Reuters)-Ford Electric motor Co said on
Monday it will certainly close its three plants in Brazil this year and also take pretax fees of about$4.1 billion as the COVID-19 pandemic magnified the company’s under use its production capacity.Production will certainly stop instantly at Ford’s plants in Camaçari and Taubaté, with some parts manufacturing continuing for a couple of months to sustain supplies for aftermarket sales. The Troller plant in Horizonte, Brazil, will continue to operate till the fourth quarter.Ford authorities claimed the action was part of the $11 billion worldwide restructuring formerly forecast by the U.S. automaker, of which it had accounted for$
4.2 billion with the third quarter of 2020. The plant closures influence about 5,000 staff members, mainly in Brazil, Ford representative T.R. Reid said on a conference call with press reporters. Sector lorry sales fell 26% in Brazil in 2014 as well as are not expected to rebound to 2019 levels until 2023 with an emphasis on much less lucrative fleet sales, Ford claimed.
“We understand these are very difficult, however required, activities to create a healthy and lasting company,” Ford President Jim Farley said in a declaration. “We are moving to a lean, asset-light organization version by stopping manufacturing in Brazil.”
With the exit from producing in Brazil, Ford retains a plant in Argentina and an additional in Uruguay.Reporting by Ben Klayman
in Detroit; Editing And Enhancing by Franklin Paul and Matthew Lewis