Ford to shut Brazil plants, takes $4.1 billion in charges
With the coronavirus crises magnifying economic losses, Ford Motor Co reported on Monday it will shut down its three plants in Brazil this year. Ford will also take whopping $4.1 billion pretax charges. Ford’s Brazil plants were described as an underused facility of the automaker.
Ford’s manufacturing activities in Camaçari and Taubaté will be immediately terminated while the operations in Belo Horizonte, Brazil will just be active until the last quarter of the year.
This development was described by the firm as part of its $11 billion global restructuring. The move did not come as a surprise as the U.S. automaker previously forecast it as it accounted for $4.2 billion through the third quarter last year. In 2020, Ford shares closed with an upbeat 3% gain.
Moreover, Ford spokesperson bared the Brazil plants closure will affect roughly 5,000 workers, with most of them based in Brazil.
Vehicle sales tumbled 26% last year and are not seen going back to pre-pandemic levels until 2023, with an emphasis on less profitable fleet sales, according to Ford’s spokesperson.