Ford announced it will close three plants in Brazil, ending vehicle production in the South American nation. The automaker will incur $4.1B in pretax charges. Ford employs 5,000 people in Brazil.
- Vehicle sales fell by 26% last year and aren't expected to return to pre-pandemic levels until 2023.
- Ford has been in Brazil for more than 100 years. Recently, it has struggled in the South American market. The company lost $386M in the first nine months of 2020 and $704M in 2019.
- The move is part of an $11B global restructuring plan that began in 2018. Ford is aiming for 8% global operating margins.
- Ford will continue selling vehicles in Brazil, which is home to its product development center and regional headquarters.
- Last month, Ford withdrew from a joint venture with Indian automaker Mahindra and Mahindra.