Ford Motor Co. brought its more than 100-year history in Brazil as the company recently announced it is closing all its factories in the said country.
Drop in sales, the coronavirus disease 2019 (Covid-19) pandemic, and the rise of the US dollar were factors in its decision, the company said.
“The Covid-19 pandemic increased the industry’s persistent idle capacity and the drop in sales, resulting in years of significant losses,” it said.
With the closure, an estimated 5,000 jobs will be lost, both in Brazil and Argentina.
“We know these are very difficult but necessary actions in order to create a healthy and sustainable business,” Ford president and chief executive officer Jim Farley said. “We are moving to an agile and lean business model by ending production in Brazil.”
The Ministry of Economy said it regrets what it called “Ford’s global and strategic decision.”
According to the ministry, Ford’s decision “goes against the strong recovery observed in most sectors of the country, many of them already registering results superior to the pre-crisis period.”