Ford announced the closure of a large plant in Brazil

Ford announced the closure of a large plant in Brazil

October 31, 2019 0 By autotimesnews

Ford closes its oldest factory in Brazil. The American company had no hope of restoring sales in this country.

Recently, the factory in São Bernardo do Campo produced Ford Fiesta, as well as commercial vehicles based on the F-350 and F-4000 chassis. Once upon a time, the brand new Ford Escort and Ka drove out of the factory gates.

In the first half of 2019, 2,800 people worked at the plant. At the same time, for the whole of 2018, 33,000 cars were assembled there. The workload of the enterprise is only 12%. According to the established rules of the automotive industry, a plant can only be profitable if it is used at least 80%.

According to Reuters, the company’s problems do not end there. Ford was never able to find a buyer for its Brazilian factory, although previously the local company CAOA, which is a distributor of Ford, Subaru, Hyundai and Chery, showed interest in it. CAOA already has a couple of assembly plants that produce Hyundai and Chery cars.

In the late 70s, CAOA began as a Ford dealer, but then the company sold and even produced cars of other brands. In September, Ford and CAOA announced that they would announce the deal within 45 days. The deadline has already expired, but so far none of the parties has made statements on this subject.

The enterprise in São Bernardo do Campo worked for 52 years – it was opened on October 9, 1967.

The crisis in the Brazilian car market has been going on for more than five years. Sales of passenger cars in this country decreased from 2013, when it was sold 3.6 million cars, until 2016 (1.99 million). And although in 2017 and 2018, demand grew by an average of 10%, the positive trend again broke. Many car companies have run into problems in this South American country, but Ford is in the worst condition. For example, General Motors plants were loaded at 78% in 2018 against 56% a year earlier.