CHICAGO, Feb. 19 (Xinhua) -- U.S. automaker Ford announced on Tuesday it will quit its commercial heavy truck business in South America. Its production at Sao Bernardo do Campo plant in Brazil will cease this year.
"Ford is committed to the South American region by building a sustainable and profitable business with strengthened product offerings, outstanding customer experience, and a leaner, more agile business model," said Lyle Watters, president of Ford South America.
The Sao Bernardo do Campo plant in Brazil was opened in 1967. It currently employs some 2,700 workers, building heavy trucks, F-series pick-ups and Fiesta cars.
Although Ford will end sales of the cargo lineup and other vehicles there, once inventories are sold, Ford has promised to work closely with local dealers and suppliers to provide support for customers with warranty, parts and service.
Ford estimates that its action to quit heavy truck business in South America will cost about 460 million U.S. dollars.
Tuesday's announcement followed a series of other initiatives aimed at redesigning Ford's South American strategy. Ford has already decided to reduce salaried and administrative costs region-wide by more than 20 percent over the past few months.
