Ford leaves the heavy truck sector in South America; Key milestone in the global overhaul of the company



SAO PAULO – (BUSINESS WIRE– As part of a complete overhaul of its global business, Ford Motor
The company announced today that it would leave the commercial heavyweight sector
in South America. As a result, the company will cease producing at the
The São Bernardo do Campo plant in Brazil in 2019, putting an end to sales of
Freight range, F-4000 and F-350 – with the Fiesta small car –
once the stocks are sold.

"Ford is committed to the South American region by building a
a sustainable and profitable company with a strengthened product offering,
an exceptional customer experience and a leaner and more agile business
model, "said Lyle Watters, president of Ford in South America.

The decision to leave the heavy commercial truck business came after
months of searching for viable solutions, including possible partnerships
and a sale of the operation. The company would have needed
significant investments to meet the needs of the market and
regulatory costs without a viable path to profitability.

"We know that this action will have a major impact on our employees in São Paulo.
Bernardo and we will work closely with all our stakeholders on the
next steps, "said Watters. "Working closely with our resellers and
suppliers, Ford will continue to provide support to our customers with
warranty, parts and service. "

This decision follows on from other recent initiatives in the current overhaul
from the South American region, including:

  • Reduce salary and administrative costs by more than 20% in the region
    percent in the last few months

  • Portfolio reinforcement with growing SUVs and pickup trucks
    popularity among consumers while ceasing the production of Focus in Argentina

  • Leverage global partnerships, such as the recently announced project
    alliance with VW to develop mid-size vans

As part of this announcement, the company intends to register
pre-tax special item expenses of approximately $ 460 million. The charges will be
includes non-cash charges of approximately $ 100 million for
depreciation and amortization. Remaining charges of approximately $ 360
million will be paid in cash and are mainly attributable to
severance and termination benefits for employees, dealers and employees
Suppliers. Most of these special item expenses and pre-tax cash outflows
will be accounted for in 2019 and are part of the $ 11 billion EBIT
with cash-related effects of $ 7 billion, the company plans to take into
the overhaul of its global activity.

About Ford Motor Company

Ford Motor Company is a global company based in Dearborn, Michigan.
The company designs, manufactures, markets and provides a complete range of
Cars, Trucks, SUVs, Electrified Vehicles and Luxury Lincoln
vehicles, provides financial services through Ford Motor Credit Company
and pursues leadership positions in electrification, autonomy
vehicles and mobility solutions. Ford employs around 199,000
people all over the world. For more information on Ford, its products and its
Ford Motor Credit Company, please visit
www.corporate.ford.com.


Source link