Another Ford retreat.
Ford Brazil will end production at its Camaçari, Taubaté and Troller plants during 2021 as weak sales have resulted in years of significant losses. Ford has been in Brazil for more than a century. However, Ford maintains at the moment it will keep South America headquarters, a product development center and proving grounds in Brazil. Last March Ford “temporarily” stopped South American Production at its manufacturing sites in Brazil and at the Pacheco plant in Argentina, in response to the growing impact of the coronavirus in South America and Ford’s profitability. (See AutoInformed – Ford Motor Maxes Out Lines of Credit , Ford Q3 Net Income at $2.4B Treads Water. Q4 $500M Loss?)
Production will cease immediately at Camaçari and Taubaté in Brazil, with some parts production continuing for a few months to support inventories for aftermarket sales. The Troller plant in Horizonte, Brazil, will continue to operate until the fourth quarter of 2021. As a result, the company will end sales of EcoSport, Ka and T4 once inventories are sold. Manufacturing operations in Argentina and Uruguay and the sales companies in other South America markets are not affected.
“We are moving to a lean, asset-light business model by ceasing production in Brazil and serving customers with some of the best and most exciting vehicles in our global portfolio. We will also accelerate bringing our customers the benefits of connectivity, electrification and autonomous technologies to efficiently address the need for cleaner and safer vehicles well into the future,” said Jim Farley, Ford president and CEO.
The latest plan among many, which Farley outlined on 1 October 2020, his first day as president and CEO, includes familiar platitudes:
- Competing like a challenger – earning business from customers by innovating and introducing great products and services, among them vehicles that are both profitable and more affordable
- Raising quality, reducing costs and improving under-performing businesses, and
- Allocating capital, talent and other resources to customer satisfaction and growth in things Ford does very well today and new businesses like electric and self-driving vehicles.
Ford will serve South America from its product portfolio, including the Ranger pickup built in Argentina, Transit van, Bronco and Mustang Mach 1. Ford said it plans to accelerate the introduction of several unnamed “connected and electrified models.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Latest Ford Restructuring – Brazil Manufacturing to Cease
Another Ford retreat.
Ford Brazil will end production at its Camaçari, Taubaté and Troller plants during 2021 as weak sales have resulted in years of significant losses. Ford has been in Brazil for more than a century. However, Ford maintains at the moment it will keep South America headquarters, a product development center and proving grounds in Brazil. Last March Ford “temporarily” stopped South American Production at its manufacturing sites in Brazil and at the Pacheco plant in Argentina, in response to the growing impact of the coronavirus in South America and Ford’s profitability. (See AutoInformed – Ford Motor Maxes Out Lines of Credit , Ford Q3 Net Income at $2.4B Treads Water. Q4 $500M Loss?)
Production will cease immediately at Camaçari and Taubaté in Brazil, with some parts production continuing for a few months to support inventories for aftermarket sales. The Troller plant in Horizonte, Brazil, will continue to operate until the fourth quarter of 2021. As a result, the company will end sales of EcoSport, Ka and T4 once inventories are sold. Manufacturing operations in Argentina and Uruguay and the sales companies in other South America markets are not affected.
“We are moving to a lean, asset-light business model by ceasing production in Brazil and serving customers with some of the best and most exciting vehicles in our global portfolio. We will also accelerate bringing our customers the benefits of connectivity, electrification and autonomous technologies to efficiently address the need for cleaner and safer vehicles well into the future,” said Jim Farley, Ford president and CEO.
The latest plan among many, which Farley outlined on 1 October 2020, his first day as president and CEO, includes familiar platitudes:
Ford will serve South America from its product portfolio, including the Ranger pickup built in Argentina, Transit van, Bronco and Mustang Mach 1. Ford said it plans to accelerate the introduction of several unnamed “connected and electrified models.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.