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Sao Paulo: The American automaker Ford announced the closure of its last three factories in Brazil, and the layoff of about 5,000 workers in this sector, which is facing a crisis due to the Covid-19 epidemic.
“Ford will stop production (…), and the epidemic has increased the amount of unused production and the decline in sales has led to years of huge losses,” it said in a statement.
The manufacturer explained that this restructuring represents a value of 4.1 billion dollars, of which 2.5 billion in 2020 and 1.6 billion in 2021.
“We know that these decisions are very difficult, but they are necessary to create a healthy and sustainable company,” the statement quoted the company’s president, Jim Farley.
Ford, as part of a restructuring plan in the world, in February 2019 closed its oldest factory in Brazil, which was employing more than 3,000 people in the historic industrial area of the city of São Bernardo do Campo, near Sao Paulo.
The car manufacturer indicated that production would stop “directly” at the Kamakari (Northeast) and Tobata (Southeast) factories, and that “the manufacture of only certain parts would continue for a few months to ensure after-sales service.”
The plant in Horizonte, in the state of Ciara (northeast), will continue operating “through the fourth quarter of 2021”. In Brazil, Ford will keep its administration headquarters, product development center, and testing ground.
And the company indicated that this plan does not include factories in Argentina and the plant project in Uruguay, or sales activities elsewhere in South America.
New car sales in Brazil fell by 26% in 2020 compared to the previous year due to the health crisis.