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Ford Multinational Continues Wave of Closing Its Factories After Ending Operations in Bahia and São Paulo, Now Moving to Authorized Dealerships
Even after closing the doors of its factories in Bahia and São Paulo, the wave of closures by Ford Multinational does not stop, and this time, the company’s Brazilian dealerships are expected to suffer from reductions in both their workforce and closures in the second half.
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Authorized Ford Dealerships Await a Final Decision from the Multinational
Following the natural course of events, it was to be expected that, after the closure of the multinational’s factories in Taubaté – São Paulo and in Camaçari – Bahia, a small portion of these problems would spill over to Ford’s authorized dealerships, generating more layoffs and closures.
In summary, Abradif – The Brazilian Association of Ford Distributors conducted a survey and projects that at least 160 of Ford’s 283 dealerships are expected to close by the end of this year, 2021.
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It is worth noting that a good part of these authorized Ford multinational dealerships should close their operations only in the second half of the following year, as there are still transactions in process.
Owners of Ford Dealerships That Will Be Closed Will Have a Deadline to Organize and Take a New Direction in Life
It has been four months since Ford multinational ceased its operations in the national territory, and since then, the number of dealerships to be closed, according to Abradif, remains stable.
Ford, on the other hand, provided two options for authorized dealership owners to keep the brand name in Brazil: Pay the indemnity according to law number 6,729 or receive an incentive to remain fully operational.
In the event of a contrary decision, the business owners of the authorized Ford dealerships will have a deadline to be defined to reorganize and take a new direction in life.
Ford’s Exit from the Country Causes the Biggest Drop in Industrial Production in Bahia State, According to IBGE Data
In light of Ford multinational’s exit from Brazil and the closure of the factories in SP and Camaçari, Bahia’s industrial production recorded, in February, the largest drop since May of last year. This is indicated by the data released last Thursday (04/08) by the Brazilian Institute of Geography and Statistics (IBGE). Ford will have to pay at least R$ 130 thousand to the laid-off workers for halting vehicle production and closing its factory in SP.
According to the survey, from January to February, Bahia’s industry registered a 5.8% drop. In comparison to February 2020, the drop was 20.9% – the most severe for the Bahia industry since May 2020, when it fell 21.4%.
The decision to end Ford’s production in Brazil generated a domino effect on the Bahia economy, which is reflected in other sectors. The automaker stated that, with the closure of its units in the country, five thousand jobs were lost in Brazil and Argentina, but according to Dieese, the impact of the automaker’s exit is expected to be 20 times greater. This is because there is a whole indirect supply chain linked to the company’s production.
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