Automaker Ford said on Tuesday it will shut down its São Bernardo do Campo plant in Brazil this year, ending sales of heavy trucks in South America, according to an SEC filing obtained by SteelOrbis.
The filing indicated Ford will no longer produce commercial heavy truck models F-4000 and F-350 in South America, along with the Fiesta sedan model.
In a separate announcement, Ford said the exit from South America’s commercial heavy truck business is a “milestone” for the company’s return to what it labeled the “sustainable profitability” of its South American operations.
Ford expects to record pre-tax special item charges of about $460 million as a result of the shutdown of the Brazilian plant, the company said.
“The charges will include approximately $100 million of non-cash charges for accelerated depreciation and amortization. The remaining charges of about $360 million will be paid in cash and are primarily attributable to separation and termination payments for employees, dealers, and suppliers,” Ford said in its SEC filing document.
Ford said the shutdown of the Brazilian plant is part of a company’s restructuring process in South America. Ford also reportedly plans to reduce workforce costs in South America in about 20 percent, while still accelerating its SUV and pickup truck businesses.