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Ford's departure from the country causes the biggest drop in industrial production in the state of Bahia, IBGE data

Written by Flavia Marinho
Published 10/04/2021 às 09:29
Renault - Ford - bosch - Chevrolet - Honda - Audi - nissan - factories - são paulo - vehicles - bahia - camaçari
Ford Factory / Source: Reproduction - Google

After Ford left the country and ended vehicle production at its factories in SP and Camaçari, the state of Bahia experienced the biggest industrial fall since 2020

Faced with the departure of the multinational Ford from Brazil and the closing of factories in SP and Camaçari, in Bahia, industrial production in Bahia recorded the biggest drop since May last year. This is what the data released last Thursday (08/04) by the Brazilian Institute of Geography and Statistics (IBGE) point out. Ford will have to pay at least R$ 130 to workers fired for paralyzing vehicle production and closing its factory in SP

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According to the survey, from January to February, the industry in Bahia recorded a drop of 5,8%. In comparison with February 2020, the fall was 20,9% - the most intense for the Bahian industry since May 2020, when it retreated 21,4%.

The decision to end Ford production in Brazil generated a domino effect in the Bahian economy, which is reflected in other sectors.

The automaker said that, with the closure of units in the country, five thousand jobs were lost in Brazil and Argentina, but, according to Dieese, the impact of the automaker's departure should be 20 times greater. There is a whole indirect chain linked to the company's production.

After Ford, multinationals Renault and Nissan may close their factories in Brazil and the automotive industry may collapse in the country

After the departure of the Ford automaker from Brazil, the global supply crisis and the pandemic made car factories such as Chevrolet, Honda, Audi (Volkswagen), Scania, Volvo and Mercedes-Benz also suspend vehicle production. Now, according to information provided by Carlos Ghosn, former CEO of major vehicle manufacturers, the multinationals Renault and Nissan may close their factories in Brazil and the automotive industry may collapse in the country.

The Brazilian car market has dropped from 4 million units/year to just 2 million, said former Nissan president Ghosn.

After Ford, Chevrolet, Honda and Audi withdraw or reduce production of vehicles in the country, the multinational Bosch brings US manufacturing to São Paulo

The German multinational auto parts manufacturer Bosch was against the movement of car manufacturers Ford, Chevrolet, Honda, Audi, (Volkswagen), Scania, Volvo and Mercedes-Benz, Nissan and Renault that decided to withdraw or reduce production in Brazil, and brought to Brazil the production of injectors and injector nozzles for trucks that were produced in their factories in the United States, thus expanding the diesel injection systems division at its plant in Curitiba.

Furthermore, the intention of the German multinational is to supply not only the domestic market, but also export a large amount – which can reach up to half of production.

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Flavia Marinho

Flavia Marinho is a postgraduate engineer with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses. Contact flaviacamil@gmail.com for suggestions, job openings or advertising on our website. Do not send your resume, we are not hiring!

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