Ford to end some truck production in South America
Ford Motor Co., as part of its $11 billion restructuring effort, will stop production of heavy trucks in South America, the carmaker said on Tuesday.
The Dearborn, Michigan-based company will no longer make cargo vans, F-4000s and F-350s, as well as the subcompact Fiesta at its São Bernardo do Campo plant in Brazil.
“Ford is committed to the South American region by building a sustainable and profitable business with strengthened product offerings, outstanding customer experience, and a leaner more agile business model,” Lyle Watters, president of the firm’s South American business, said in a statement.
Ford explored potential partnerships, as well as a sale of the division, before making the decision to end production and argued sustaining operations would require “significant capital investments to meet market needs and increasing regulatory costs with no viable path to profitability.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 10.98 | -0.15 | -1.35% |
The withdraw – which the company expects will cost $460 million – comes amid other efforts by Ford to streamline its business in South America, including a 20 percent reduction in salaries in the region.
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In January, Ford reported a $116 million profit loss in the fourth quarter, the latest in a string of year-over-year declines. It previously announced thousands of job cuts in Europe as part of the turnaround plan.