Ford Motor Company is shutting down its three manufacturing plants in Brazil as part of a global cost cutting strategy that began in 2018.
The cost-cutting is aiming to achieve an 8% EBIT (earnings before interest and taxes) as well as greater free cash flow, in part to boost Ford's long-flagging stock price.
The shutdowns will result in the loss of about 5,000 jobs in Brazil.
Ford Brazil will cease production at Camaçari, Taubaté and Troller plants during 2021, the company said in a press release, "as the COVID-19 pandemic amplifies persistent industry idle capacity and slow sales that have resulted in years of significant losses."
The Brazil shutdowns will cost the company about $4 billion over two years.