DETROIT (Reuters) – Ford Motor Co said Monday it would close three plants in Brazil this year and charge about $ 4.1 billion in taxes as the COVID-19 pandemic boosts of its production capacity.
Production will stop immediately at Ford’s plants in Kamachari and Taubate, and production of some parts will continue for several months to support after-sales stocks. The Troller plant in Horizon, Brazil, will continue to operate until the fourth quarter.
Ford said the stock was part of a $ 1
The plant’s closure is affecting about 5,000 employees, mostly in Brazil, a Ford TR Reid spokesman told reporters in a conference call. Industrial vehicle sales fell 26% in Brazil last year and are not expected to return to levels from 2019 to 2023, with a focus on less profitable fleet sales, Ford said.
“We know these are very difficult but necessary actions to create a healthy and sustainable business,” said Ford CEO Jim Farley in a statement. “We are moving to a weak, light business model by stopping production in Brazil.”
With the withdrawal from production in Brazil, Ford retained a plant in Argentina and another in Uruguay.
Report from Ben Kleiman in Detroit; Edited by Franklin Paul and Matthew Lewis