As part of a global redesign of the company Ford will cease heavy commercial production at the São Bernardo do Campo plant in Brazil during 2019.
Sales of the Cargo lineup, F-4000 and F-350, along with the Fiesta small car will ceases once inventories are sold.
The decision to exit the heavy commercial trucks business came after months of pursuing viable alternatives, including possible partnerships and a sale of the operation. The business would have required significant capital investments to meet market needs and increasing regulatory costs with no viable path to profitability.
“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,” says Ford of South America president Lyle Watters.
“We know this action will have a major impact on our employees in São Bernardo and we will be working closely with all our stakeholders on the next steps,” says Watters. “Working closely with our dealers and suppliers, Ford will continue to provide support for our customers with warranty, parts and service.”
This decision follows other recent initiatives in the on-going redesign of the South American region including reducing salaried and administrative costs region-wide by more than 20% over the past few months.
Ford is strengthening its South American portfolio with SUVs and pickups that are growing in popularity with consumers while ceasing Focus production in Argentina.
It is also leveraging global partnerships, such as the recently announced alliance with VW to develop mid-size pickup trucks.
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