Ford leaves the truck market in South America

FILE PHOTO: The Ford logo is represented on the company's stand at the 88th Geneva International Motor Show, in Geneva, Switzerland, on March 7, 2018. REUTERS / Denis Balibouse

DETROIT (Reuters) – Ford Motor Co. said Tuesday it would exit its commercial heavyweight business in South America and would stop producing at a Brazilian plant this year as part of a global restructuring aimed at stop losses in different regions.

As part of a broader restructuring that, according to Ford, would entail $ 11 billion in costs, the company announced that it would cease production at its Sao Bernardo do Campo plant, thereby ending the sale of the range of freighters, F-4000 and F-350 trucks as well as the Fiesta small car once the stocks sold.

Ford announced Jan. 10 that it would cut thousands of jobs and would consider closing factories in Europe as part of its plan to restore profits in the region.

After this announcement, analysts and investors expected a similar restructuring in South America. Ford chief executive Jim Hackett said this month that investors should not wait long for the South American reorganization plan.

Ford's president in South America, Lyle Watters, said the automaker remained "engaged" in South America, a region where it is currently not profitable.

"We know that this action will have a major impact on our employees in São Bernardo and we will work closely with all our stakeholders for the next steps," Watters said in a statement.

US automaker No. 2 expects to record special pre-tax charges of about $ 460 million, most of which was recorded this year, the statement said.

Ford said Tuesday's announcement followed other measures, including cutting more than 20 percent of salary and administrative costs in the region in recent months.

Ben Klayman's report to Detroit; Edited by Jonathan Oatis and Matthew Lewis

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