Ford Exits Brazil, and the Reason Behind It Is More Complex Than It Seems: Understand Why It Decided to End Its Operations in the Country and How Tax Burden Influences Car Prices

Written by Bruno Teles

Published on 06/06/2024 at 12:23

Os carros no Brasil são conhecidos por serem caros, mas você sabia que, sem os impostos, eles estariam entre os mais baratos do mundo? A saída da Ford do Brasil é um exemplo claro de como a carga tributária alta e a estrutura de custos impactam a indústria automotiva no país. Imagem: Fatos/Divulgação

Seja o primeiro a reagir!

Cars in Brazil Are Known for Being Expensive, But Did You Know That, Without Taxes, They Would Be Among the Cheapest in the World? Ford’s Exit from Brazil Is a Clear Example of How High Tax Burden and Cost Structure Impact the Automotive Industry in the Country.

The tax burden on Brazilian cars is one of the highest in the world. When you buy a car in Brazil, you are paying for a series of taxes embedded in the price. This makes the final cost to the consumer much higher than in other countries.

In Brazil, consumption taxes are extremely high. Approximately 42% of government revenue comes from consumption taxes, while in the United States, this number is only 16%. This type of taxation is considered unfair, as it impacts people of different income levels equally.

To Better Understand, Let’s Use the Example of the Toyota Corolla

In Brazil, the list price of the Toyota Corolla is R$ 185,000. If we remove the taxes, the value for the manufacturer is R$ 122,500. In the United States, the same model costs US$ 27,900, which, without taxes, is equivalent to R$ 140,000 for the manufacturer. In other words, even with the lower final price in Brazil, the manufacturer receives less here than in the U.S.

ARTICLE CONTINUES BELOW

Beyond Taxes, Other Factors Like Inefficient Infrastructure and High Production Costs Also Impact the Operation of Automakers in Brazil, Like Ford

All of this led Ford to decide to cease its manufacturing activities in the country and focus on imports, where it can maintain higher profit margins. The situation of cars in Brazil reflects a tax system that urgently needs reform. The tax reform under discussion proposes a VAT (Value Added Tax) that could reach 27%, the highest in the world. This means that consumption taxation will remain high, further hindering price reductions for the final consumer.

Ford’s exit from Brazil highlights the need for a review of the tax structure to make the market more competitive and attractive for automakers. Until that happens, Brazilian consumers will continue to pay high prices for their cars, and the country will keep losing important investments.

Ford’s exit from Brazil is a warning about the challenges faced by the automotive industry in the country. The high tax burden and production costs hinder the profitability of automakers, directly affecting consumers. Tax reforms are essential to improve this situation and make the market more competitive.

11 Comentários

Mais recente

Mais antigos Mais votado

Feedbacks

Visualizar todos comentários

Douglas

#11690

10/06/2024 12:56

Mas então pq as outras montadoras tb não foram embora?
Conversa fiada essa reportagem, agora Ford é só importante mas não vende nada e é insignificante as vendas da Ford.
Esqueceram de falar que as concessionárias Ford eram péssima em atendimento e o pós venda pior ainda.

Responder

Julio

#11400

08/06/2024 04:33

Não dez sentido dizer que com o preço menor aqui no Brasil, mesmo assim a empresa fatura mesmo. Isso é óbvio e para ser sempre assim. Estranho seria faturar mais com um preço menor

Responder

Celso Aparecido da Silva

#11389

08/06/2024 00:49

Mentira.
Fabricantes de veículos estão entrando no Brasil.
A visão da empresa Ford é que aquele governo eleito em 2018 , não favorecia o crescimento de mercado de veículos e deixava claro isso.
Com baixa demanda, a empresa Ford achou por bem deixar o Brasil onde por 102 anos passou por pandemias , guerras mundiais, mas não suportou um desgoverno voltado para uma pequena parcela da população.
O princípio da empresa Ford foi justamente o contrário, onde Henry Ford popularizou o veículo automotor dando condição de compra para os empregados da montadora adquirirem o produto que eles produziam.
Daí veio o sucesso da empresa de Henry Ford

-2

Responder

Ford Exits Brazil, and the Reason Behind It Is More Complex Than It Seems: Understand Why It Decided to End Its Operations in the Country and How Tax Burden Influences Car Prices

Cars in Brazil Are Known for Being Expensive, But Did You Know That, Without Taxes, They Would Be Among the Cheapest in the World? Ford’s Exit from Brazil Is a Clear Example of How High Tax Burden and Cost Structure Impact the Automotive Industry in the Country.

To Better Understand, Let’s Use the Example of the Toyota Corolla

Beyond Taxes, Other Factors Like Inefficient Infrastructure and High Production Costs Also Impact the Operation of Automakers in Brazil, Like Ford

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

While the U.S. still faces limitations in deep space, China is developing unprecedented technology with strategic satellites that maintain communication with the far side of the Moon and aims for dominance by 2030.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

The Blood Falls of Antarctica hide a living ecosystem trapped under the ice for over 2 million years, where microbes survive without light, without oxygen, and without ever having seen the Sun.

The CEO of Honor in Spain says that smartphones will change with AI, foldables, and even robot phones; the component crisis is making cheap models more expensive in 2026 and shifting the focus to premium.

New soybean route may connect Roraima to a port in Guyana, half of the route is still unpaved, the country has enriched with oil and promises paving by 2030.

Ítalo, a young man from Pará who, even while hospitalized with a rare disease, took the Enem exam in the hospital and was accepted into medical school at three public universities: UFPA, UEPA, and UFRJ.

Larger than Manhattan and visible from space in a single orbital image, the Texas airport spans over 69 km² with 7 runways, dozens of kilometers of taxiways, and an annual flow of millions of passengers that makes Dallas Fort Worth one of the largest airport structures ever built on the planet.

Agricultural drones can already spray up to 500 hectares per day in Brazil, reduce costs, and prevent losses, but they require an investment of up to R$ 300,000, planning, extra batteries, and care to avoid crashing into the crops.

He places a lemon between the positive and negative of the antenna of an AM radio tower and asks to turn on the transmitter: within seconds, the fruit starts to heat up and “sing,” demonstrating how AM radio frequency can generate vibration and sound.

Ford Exits Brazil, and the Reason Behind It Is More Complex Than It Seems: Understand Why It Decided to End Its Operations in the Country and How Tax Burden Influences Car Prices

Cars in Brazil Are Known for Being Expensive, But Did You Know That, Without Taxes, They Would Be Among the Cheapest in the World? Ford’s Exit from Brazil Is a Clear Example of How High Tax Burden and Cost Structure Impact the Automotive Industry in the Country.

To Better Understand, Let’s Use the Example of the Toyota Corolla

Beyond Taxes, Other Factors Like Inefficient Infrastructure and High Production Costs Also Impact the Operation of Automakers in Brazil, Like Ford

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

While the U.S. still faces limitations in deep space, China is developing unprecedented technology with strategic satellites that maintain communication with the far side of the Moon and aims for dominance by 2030.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

The Blood Falls of Antarctica hide a living ecosystem trapped under the ice for over 2 million years, where microbes survive without light, without oxygen, and without ever having seen the Sun.

The CEO of Honor in Spain says that smartphones will change with AI, foldables, and even robot phones; the component crisis is making cheap models more expensive in 2026 and shifting the focus to premium.

CNH do Brasil will allow you to choose your instructor and driving school by location, with reviews and WhatsApp: New Instructor Journey will start on April 27, 2026, nationwide.

It has a 1.5 flex engine with 116 hp, CVT transmission, and achieves 12.4 km/l on the highway: the Honda WR-V is spacious, reliable, economical, and sought after in the used car market.

The BYD Dolphin Mini costs R$ 0.10 per kilometer driven compared to R$ 0.60 for popular gasoline, and the total savings over 5 years exceeds R$ 19,000 for the average Brazilian driver.

For R$ 66,800 in the Fipe table, the Chevrolet Onix LT 2023 delivers up to 735 km of range on a full tank, remains among the best-selling used cars in Brazil, and still appears as a more rational alternative than many brand new hatchbacks.

The fifth Japanese brand tried to compete with Honda by offering more advanced motorcycles, including shaft drive and even V-twin engines. It shone on the tracks but failed in the mass market and was ultimately swallowed by its own rival.

New soybean route may connect Roraima to a port in Guyana, half of the route is still unpaved, the country has enriched with oil and promises paving by 2030.

Ítalo, a young man from Pará who, even while hospitalized with a rare disease, took the Enem exam in the hospital and was accepted into medical school at three public universities: UFPA, UEPA, and UFRJ.

Larger than Manhattan and visible from space in a single orbital image, the Texas airport spans over 69 km² with 7 runways, dozens of kilometers of taxiways, and an annual flow of millions of passengers that makes Dallas Fort Worth one of the largest airport structures ever built on the planet.

Agricultural drones can already spray up to 500 hectares per day in Brazil, reduce costs, and prevent losses, but they require an investment of up to R$ 300,000, planning, extra batteries, and care to avoid crashing into the crops.

He places a lemon between the positive and negative of the antenna of an AM radio tower and asks to turn on the transmitter: within seconds, the fruit starts to heat up and “sing,” demonstrating how AM radio frequency can generate vibration and sound.