Photo: Ford
At the beginning of the year, Ford Motor Company gave up on the Indian joint venture with Mahindra & Mahindra, the automaker that owns SsangYong, Peugeot Motorcycles, and Pininfarina. The restructuring plan has kicked into overdrive today with the announcement that Ford of Brazil will cease manufacturing operations in the fourth quarter of 2021.
“With more than a century in South America and Brazil, we know these are very difficult - but necessary - actions to create a healthy and sustainable business,” declared chief executive officer and president Jim Farley. “We are moving to a lean, asset-light business model by ceasing production in Brazil and serving customers with some of the best and most exciting vehicles in our global portfolio,” signed off the successor of Jim Hackett.
As a result of this worrying news, the Blue Oval expects to record pre-tax special item charges of $4.1 billion split between $2.5 billion in 2020 and $1.6 billion in 2021. The Dearborn-based automaker has also announced that it’s working closely with unions and stakeholders on an equitable plan to mitigate the impacts of ending production in the South American country.
At the present moment, Ford operates three manufacturing facilities in Brazil. The Troller T4 in the main photo and gallery is made in Horizonte, the Camacari plant makes the Ka, EcoSport, and 1.0-liter Ti-VCT engine, while the Taubate site is responsible for two engines and a manual transmission.
We should also remember that FoMoCo isn’t done restructuring yet. Three years ago, when Jim Hackett was running the show, the Blue Oval laid the groundwork for a turnaround plan estimated at a whopping $11 billion.
On a more positive note, the Mustang Mach-E wouldn’t have happened without this money. Recently crowned the North American Utility Vehicle of the Year, the electric crossover is available to order from $42,895 excluding the destination charge, options, and $7,500 federal tax credit.
Going forward, the Ford Motor Company intends to expand its lineup with two Volkswagen MEB-based models in Europe. According to the information that transpired to the business and automotive media so far, the two newcomers will be similar in footprint to the ID.3 hatch and ID.4 crossover.
As a result of this worrying news, the Blue Oval expects to record pre-tax special item charges of $4.1 billion split between $2.5 billion in 2020 and $1.6 billion in 2021. The Dearborn-based automaker has also announced that it’s working closely with unions and stakeholders on an equitable plan to mitigate the impacts of ending production in the South American country.
At the present moment, Ford operates three manufacturing facilities in Brazil. The Troller T4 in the main photo and gallery is made in Horizonte, the Camacari plant makes the Ka, EcoSport, and 1.0-liter Ti-VCT engine, while the Taubate site is responsible for two engines and a manual transmission.
We should also remember that FoMoCo isn’t done restructuring yet. Three years ago, when Jim Hackett was running the show, the Blue Oval laid the groundwork for a turnaround plan estimated at a whopping $11 billion.
On a more positive note, the Mustang Mach-E wouldn’t have happened without this money. Recently crowned the North American Utility Vehicle of the Year, the electric crossover is available to order from $42,895 excluding the destination charge, options, and $7,500 federal tax credit.
Going forward, the Ford Motor Company intends to expand its lineup with two Volkswagen MEB-based models in Europe. According to the information that transpired to the business and automotive media so far, the two newcomers will be similar in footprint to the ID.3 hatch and ID.4 crossover.
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