Ford closes three production plants along with global production in Brazil. The ccompany announced the PlanToday it has provided more details, reassuring those in the South American market which, despite the closures, remains committed to the region.
Two of the blue egg production lines in Brazil will close immediately. The Camaçari and Taubaté plants will end production, while the Troller plant in Horizonte, in the Brazilian state of Ceará, will cease production in the fourth quarter of 2021.
Ford promises to continue serving the South American market with cars produced in Argentina and Uruguay, where they are assembled of some models will continue. The Ford Ranger is one such model; occurs in Argentina.
Press reports cite the FordCEO Jim Farley said:
“With more than a century in South America and Brazil, we know that these are very difficult actions but necessary to create a healthy and sustainable business. We are moving towards an agile business model with a lighter structure in Brazil and towards providing these customers with some of the best and most exciting cars in our global portfolio. We also strive to offer our customers the benefits of connectivity, electrification and autonomous technologies in order to efficiently meet the need for green and future-proof vehicles.
G / O Media may receive a commission
Ford continues to emphasize this the only thing that closes in Brazil is production. But for the South American country it’s an understandably solemn announcement, as the closure will affect many of the country’s workers. Ford says it is coordinating with affected parties to improve the news.
And it’s not the first time a Brazilian Ford plant has closed. Remember that the vehicle manufacturer Closed its Sao Bernardo do Campo plant last year. The notable difference here is that car production is ceasing nationwide.
The report also cites Lyle Watters, president of Ford South America and the International Markets group:
In addition to reducing costs in all business aspects, we oversaw the launch of Ranger Storm, Territory and Kuga, as well as introducing innovative services to our customers. Although these efforts had positive results during the last quarters of the fiscal year, continued unfavorable economic conditions and the additional burden of the pandemic made it clear that it was necessary to do so in order to create a sustainable future.
Thus, while Farley was not explicit, Watters noticed the effect the pandemic had had on the company. However, the Ford Center on producte ddevelopment in Bahia and its test grounds in Tatuí, São Paulo, it will remain open. Ford’s regional headquarters there will also remain open.
The two plants whose production ends today will continue to operate only to produce parts needed to bolster spare parts inventories in the country. But vehicle production is closing in on plants and when the country’s dealerships run out EcoSport, Ka, i Troller T4 models, sales of these will end.
These three models face an uncertain future now and among others these I will cry the Ka more, even though the T4 Troller is a close second. We have contacted Ford and will provide you with the updates that the vehicle manufacturer offers.
UPDATE [Monday, January 11, 2021, 06:05 PM CT]
A spokesman for the Ford Motor Company responded to our inquiry into the plant’s closures, stating:
We will serve the needs of South American customers, including Brazil, with a range of modern and connected SUVs, vans and commercial vehicles from Argentina, Uruguay and other regions. In addition to the recently announced Transit, New-Gen Ranger, Mach-1 Mustang, Bronco, we will be introducing several new vehicles, including some new ones and an add-on. This includes expanding connected services and introducing new automated and electrified technologies to markets.
As we said today, production will cease immediately in Camaçari and Taubaté, and the production of some pieces will continue for a few months to support subsequent sales inventories. The Troller plant in Horizonte 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 sales companies in other SA markets are not affected.
In Argentina, manufacturing operations will not be affected and the investment plan to produce the new generation of Ranger continues as planned. Ka sales will continue until inventories are depleted and EcoSport sales continue to come from an alternative region for Consortium customers.