Ford closes plants in Brazil due to Covid-19
Brasilia, Jan 12 (Prensa Latina) The US multinational company Ford is fully closing its production plants in Brazil due the Covid-19, however, it will maintain its South American headquarters open.
In a statement, the company, which ended 2020 as the country's fifth largest vehicle seller with 7.14 percent of the market, will continue, though, to market products in Brazil and continue to provide maintenance and warranty assistance.
The automaker had plants in Camaçari, state of Bahia (northeast), Taubaté (Sao Paulo) and Horizonte (Ceará, northeast).
Ford's decision will leave over 5,000 workers off work, thus worsening the unemployment crisis that is hitting Brazil, which has 14 million unemployed people. In all, the corporation has 6,171 employees in Brazil.
It's also a blow to the Bolsonaro administration that is unable to boost the economy.
Among the current facilities, the Product Development Center, in Bahia, will be maintained, as well as the test field and the administrative headquarters for South America, both in Sao Paulo.
The company noted the decision was made as the Covid-19 pandemic expands the industry's idle capacity and reduced sales, resulting in significant losses.
It cited the recent devaluation of the region's currencies, which 'increased industrial costs beyond recoverable levels.'
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