Ford Pulls Out of South American Truck Market
By Mike Osenga20 February 2019
Ford is pulling out of the South American commercial heavy truck markets. Saying it was part of a comprehensive redesign of its global business, Ford will end production at its São Bernardo do Campo plant in Brazil during 2019, ending sales of the Cargo lineup, F-4000 and F-350 — along with the Fiesta small car — once inventories are sold.
Ford said its decision to exit the heavy commercial trucks business came after months of pursuing viable alternatives, including possible partnerships and a sale of the operation. The business would have required significant capital investments to meet market needs and increasing regulatory costs with no viable path to profitability, the company said.
This decision follows other recent initiatives in the on-going redesign of the South American region including reducing salaried and administrative costs region-wide by more than 20 percent and leveraging global partnerships, such as the recently announced alliance with VW to develop mid-size pickup trucks
“We know this action will have a major impact on our employees in São Bernardo and we will be working closely with all our stakeholders on the next steps,” Lyle Watters, president, Ford of South America said. “Working closely with our dealers and suppliers, Ford will continue to provide support for our customers with warranty, parts and service.”