Ford in an effort to change its business in South America, which is losing money, will close a factory in Brazil and abandon the business of commercial heavy trucks in the region.
The automaker will stop production this year at its assembly plant in São Bernardo do Campo, according to a statement. The plant employs almost 2,800 workers who build F-4000 and F-350 cargo trucks, in addition to the Fiesta small car.
A spokesman said there will be a significant impact on employment but declined to give a specific number as the company continues to work with union leaders on the cuts.
“We know that this action will have a great impact on our employees in São Bernardo and we will be working closely with all of our stakeholders during the next steps,” Lyle Watters, president of Ford of South America, said in the statement.
The executive director, Jim Hackett, is leading a US $11 billion Ford restructuring and has highlighted the strength of his commercial truck business in other parts of the world. The total earnings before interest and taxes sank last year: the company lost US $678 million in the region.