1/11, 8:10 PM (Source: TeleTrader)
more TeleTrader news

Ford to ax output in Brazil, face $4.1B charges

Ford Motor Company announced on Monday it will cease vehicle production at Camacari, Taubate and Troller plants in Brazil during 2021 as part of a restructuring of its South American operations.

The Michigan-based vehicle manufacturer is set to be hit with $4.1 billion in pretax charges for closing three factories in the most populous South American country, including $2.5 billion in cash charges due to employee separation, termination, settlement and other payments in 2020, as well as around $1.6 billion of non-cash charges "related to writing-off certain tax receivables and for accelerated depreciation and amortization" in fiscal 2021.

According to Ford South America President Lyle Watters, the "sustained unfavorable economic environment and the additional burden of the pandemic" pushed the company to act towards "creating a sustainable and profitable future."

Breaking the News / GA