Three Ford factories in Brazil are ready to be closed this year.
This development occurred after the coronavirus epidemic in the South American country surged, resulting into slow sales, AFP reports.
According Bloomberg, the closures which will incur one-off charges of about $4.1 billion, is a decision which will affect some 5,000 workers.
The company said in a statement: “Ford Brazil will cease production at Camacari, Taubate and Troller plants during 2021, as the Covid-19 pandemic amplifies persistent industry idle capacity and slow sales that have resulted in years of significant losses,”
Ford president and CEO Jim Farley also said, “With more than a century in South America and Brazil, we know these are very difficult, but necessary, actions to create a healthy and sustainable business,”
Speaking further, he stated that the company was moving to a “lean, asset-light business model”.
Meanwhile, new vehicle sales in Brazil retreated by more than 26 percent in 2020 due to the health crisis, the Fenabrave automotive federation said last week.
On sales, the car sales have dropped 28.57 percent and that of buses by 33 percent.
On the way forward concerning the decision of the company, the company said it would work with unions to develop an “equitable and balanced plan” to mitigate the impact of the closures on workers.
