Closure of Ford Factories in Brazil: See the Financial Impacts of Ending Production

Written by Roberta Souza

Published on 12/01/2021 at 15:11

Fábrica da Ford

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Ford Vehicle Manufacturer Ceased 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 cessation of production in its factories in Brazil. As a result, the financial impact may reach US$ 4.1 billion, including non-recurring expenses, alongside the significant economic impact from the closure of 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, approximately US$ 2.5 billion will directly impact the cash flow of the American multinational, primarily related to liquidation, severance, agreements, and other payments. Meanwhile, US$ 1.6 billion comes from the accounting impact of tax credit write-offs, accelerated depreciation, and amortization of fixed assets.

Lyle Watters, President of Ford South America, emphasizes that after reducing the cost of “all aspects of the business” and ceasing unprofitable production, including the end of truck production, which improved results over the last four quarters, the pandemic exacerbated the unfavorable economic environment, and much more would be needed to make operations sustainable and profitable.

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Closure of Ford Factories in Brazil: See the Financial Impacts of Ending Production

Ford Vehicle Manufacturer Ceased Production in Brazil with the Closure of Three Factories, Causing a Financial Impact of US$ 4.1 Billion

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Closure of Ford Factories in Brazil: See the Financial Impacts of Ending Production

Ford Vehicle Manufacturer Ceased Production in Brazil with the Closure of Three Factories, Causing a Financial Impact of US$ 4.1 Billion

See Other News of the Day:

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Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

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