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Automaker Ford ended production in Brazil with the closure of three factories, causing a financial impact of US$ 4,1 billion
The American multinational Ford announced yesterday the closure of production at its factories in Brazil. With this, the financial impact could reach US$ 4,1 billion, with non-recurring expenses, in addition to the great economic impact with the closure of the units in Camaçari (BA), Taubaté (SP) and Horizonte (CE). 5.000 employees will be laid off.
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Of the US$4,1 billion, around US$2,5 billion will directly affect the US multinational's cash, mainly related to liquidation, termination, settlements and other payments. Already US$ 1,6 billion comes from the accounting impact of the write-off of tax credits, accelerated depreciation and amortization of fixed assets.
Lyle Watters, president of Ford in South America, points out that after reducing the cost of "all aspects of the business" and ending production of non-profitable items, including the closure of truck production, which has improved results in the last four quarters , the pandemic exacerbated the unfavorable economic environment, and that much more would be needed to make operations sustainable and profitable.
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The automaker has promised to work with "possible and reasonable alternatives" to allow interested parties to buy facilities that are on the verge of closing.
Ford is closing two plants immediately and a third later this year, affecting around 5.000 Brazilian employees. This is part of the long-term $11 billion restructuring plan that began with former CEO Jim Hackett. Ford claims it has lost hundreds of millions of dollars in Brazilian regions. Vehicles sold in Brazil will continue to come from Argentina, Uruguay and other markets, the company says in a press release.
