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Ford will close production operations in Brazil, will take $ 4.1 billion in fees

FILE PHOTO: Ford’s corporate logo seen at the Brussels Motor Show, Belgium, January 9, 2020 REUTERS / Francois Lenoir

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

1 billion global restructuring previously envisaged by the U.S. carmaker, which totaled $ 4.2 billion in the third quarter of 2020.

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

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