- Ford remains committed to customers in Brazil and South America
with all-new Ranger pickup, Transit van and several of its most
iconic models, with plans to launch several new connected and
electrified vehicles
- Ford Brazil will cease production at Camaçari, Taubaté 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 maintains South America headquarters, product development
center and proving grounds in Brazil
Ford Motor Company today announced it will serve customers in
the South America region with a portfolio of exciting connected and
increasingly electrified SUVs, pickups and commercial vehicles
sourced from Argentina, Uruguay and other markets, as Ford Brazil
ceases production operations in 2021.
Ford will serve the region from its global product portfolio,
including some of its most popular vehicle lines such as the
all-new Ranger pickup built in Argentina, new Transit van, Bronco
and Mustang Mach 1, and plans to accelerate the introduction of
several new connected and electrified models. Ford maintains full
customer support operations with sales, service, aftermarket parts
and warranty support in Brazil and South America. Ford will also
maintain its product development center in Bahia, its proving
ground in Tatuí, São Paulo, and its regional headquarters in São
Paulo.
“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,” said Jim Farley, Ford president
and CEO. “We are moving to a lean, asset-light business model by
ceasing production in Brazil and serving customers with some of the
best and most exciting vehicles in our global portfolio. We will
also accelerate bringing our customers the benefits of
connectivity, electrification and autonomous technologies to
efficiently address the need for cleaner and safer vehicles well
into the future.”
Ford said it would immediately begin working closely with its
unions and other stakeholders to develop an equitable and balanced
plan to mitigate the impacts of ending production.
“Our dedicated South America team made significant progress in
turning around our operations, including phasing-out unprofitable
products and exiting the heavy truck business,” said Lyle Watters,
president Ford South America and the International Markets Group.
“In addition to reducing costs across the business, we launched the
Ranger Storm, Territory and Escape, and introduced innovative
services for our customers. While these efforts improved results
over the past four quarters, the sustained unfavorable economic
environment and the additional burden of the pandemic made it clear
that much more was necessary to create a sustainable and profitable
future."
Ford is actively evaluating its businesses around the world,
including in South America, making choices and allocating capital
in ways that advance Ford’s plan to achieve an 8% company
adjusted
EBIT margin and generate consistently strong adjusted free cash
flow. Ford’s plan calls for developing and delivering high-quality,
high-value, connected vehicles – increasingly electric vehicles –
and services that are affordable to an even broader range of
customers and profitable for Ford. The company is moving quickly
to:
- Turn around its automotive business – competing like a
challenger while simplifying and modernizing all aspects of the
company, and
- Grow by capitalizing on existing strengths, disrupting the
conventional automotive business, and partnering with others to
gain expertise and efficiency.
“We will work earnestly with unions, employees and other
stakeholders to develop measures to help deal with the difficult
impact of this announcement,” Watters continued. “I want to
emphasize that we are committed to the region for the long-term and
will continue to offer customers full sales, service and warranty
support. This is especially true as we bring to market a robust
lineup of exciting connected and electrified SUVs, pickups and
commercial vehicles from within and outside of the region.”
Watters added that, in addition to the recently confirmed
production of the next-generation of Ranger and the arrival of the
Bronco, Mustang Mach 1 and Transit van, Ford plans to announce
other all-new models, including a new plug-in vehicle. This
includes expanding connected services and introducing new automated
and electrified technologies to South America.
Production will cease immediately at Camaçari and Taubaté in
Brazil, with some parts production continuing for a few months to
support inventories for aftermarket sales. The Troller plant in
Horizonte, Brazil, 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 the sales companies in
other South America markets are not affected.
Ford will continue to facilitate possible reasonable
alternatives for interested parties to take over available
production facilities.
In connection with this announcement, Ford currently expects to
record pre-tax special item charges of about $4.1 billion,
including about $2.5 billion in 2020 and about $1.6 billion in
2021. The charges will include about $1.6 billion of non-cash
charges related to writing-off certain tax receivables and for
accelerated depreciation and amortization. The remaining charges of
about $2.5 billion will be paid in cash, primarily in 2021, and are
attributable to separation, termination, settlement and other
payments.
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in
Dearborn, Michigan. The company designs, manufactures, markets and
services a full line of Ford cars, trucks, SUVs, electrified
vehicles and Lincoln luxury vehicles, provides financial services
through Ford Motor Credit Company and is pursuing leadership
positions in electrification; mobility solutions, including
self-driving services; and connected services. Ford employs
approximately 187,000 people worldwide. For more information
regarding Ford, its products and Ford Motor Credit Company, please
visit corporate.ford.com.
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constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on expectations, forecasts, and assumptions by
our management and involve a number of risks, uncertainties, and
other factors that could cause actual results to differ materially
from those stated, including, without limitation:
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additional discussion, see “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2019, as
updated by our subsequent filings with the Securities and Exchange
Commission.
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