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Ford returns to Brazil in triumph after abruptly leaving the country? See what needs to happen for the automaker to resume production on Brazilian soil

Written by Alisson Ficher
Published 21/09/2024 ร s 14:46
Could Ford return to Brazil? See how the electric vehicle revolution could transform the automaker's future in the country.
Could Ford return to Brazil? See how the electric vehicle revolution could transform the automaker's future in the country.

Could Ford be preparing a triumphant return to Brazil? After the automaker ceased operations in 2021, the country remains one of the company's main markets in Latin America. However, there is one key factor that could bring the manufacturer back.

According to a Rogelio Golfarb, vice president of Ford in South America, Brazil has great potential in the electric vehicle market, mainly due to the presence of essential minerals for battery production, such as lithium and manganese.

However, he emphasizes that โ€œthe country needs to accelerate the process of industrialization and processing of these resources.โ€ According to Golfarb, while other countries, such as Canada, are already developing clear policies to attract battery industries, Brazil is still moving at a slow pace.

Golfarb explained that Canada, for example, not only has lithium, but is also creating robust policies to attract the battery and parts industry. He believes Brazil has the natural resources, but lacks speed.

โ€œWe have the minerals, but we are moving at a very slow pace compared to the rest of the world,โ€ the vice president said in interview with the newspaper Folha de S. Paulo.

Ford's exit and the challenges of a possible return

Even without immediate plans to return to production in Brazil, Ford does not rule out the possibility of a return in the future.

The key factor in this decision is directly related to the advancement of electromobility. According to Golfarb, the company is constantly evaluating the technological innovation scenario in the country.

โ€œAs the level of electrification technology grows, we will undoubtedly be evaluating local production,โ€ he said in an interview with Folha de S. Paulo.

Brazil has the potential to become a hub for electric vehicle technologies, mainly due to its abundant raw materials, skilled engineers and a vast consumer market. However, to achieve this, it will need to overcome some obstacles.

The first is the speed of innovation. According to Golfarb, Brazilian industry needs to keep up with the pace of major economies to remain competitive in the electrification of automobiles.

The importance of Brazilian minerals

Brazil is one of the few countries that has a wide range of minerals essential for the manufacture of batteries, such as lithium, manganese and copper.

According to Ford's CEO, this is an important competitive advantage, but the country still needs to develop the technology to process and industrialize these materials.

โ€œWe have an advantage in terms of mineral resources, but the challenge is to add value to these materials in the national territoryโ€, says Golfarb.

However, he warns that the big problem for Brazilian industry is not just the reduction in its share of GDP, but the drop in the technological intensity of what is produced locally.

According to Golfarb, the electrification process could be an opportunity to reverse this scenario, increasing the relevance of industry in GDP and expanding the use of cutting-edge technologies.

The success of the Chinese and the impact on Ford

Chinese automakers have been quick to embrace electromobility, while others, such as European, American and Japanese automakers, have had a harder time competing in this market.

According to the CEO, the great victory of Chinese companies was to get ahead and invest in electrification while other countries were still discussing whether this technology would have a future.

By taking the lead, Chinese manufacturers have dominated the global electric vehicle market, creating significant dependence on their battery and component technologies.

Golfarb notes that currently, most manufacturers wanting to produce electric cars have to turn to Chinese suppliers.

โ€œIf you want to make an electric car in the world today, you will have to buy components and batteries from China,โ€ he explained, highlighting the global dependence on Chinese technology.

The future of Brazil in electromobility

With the growing demand for electric vehicles and the search for new sources of supply, Brazil finds itself in a strategic position.

โ€œThere is a growing need for alternative sources of supply, which puts Brazil in a privileged position due to its mineral resources,โ€ said Golfarb in the interview with Folha de S. Paulo.

However, for the country to take advantage of this opportunity, it will be necessary to invest in infrastructure, technology and industrial policies that stimulate innovation and local development.

Do you believe that Ford could one day return to Brazil? Leave your answer in the comments and justify it! Until next time, reader!

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Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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