Ford closes factory in São Bernardo do Campo, where 3000 people

Ford is shutting down the plant of São Bernardo do Campo, in the ABC Paulista, and fire a large portion of the approximately 3000 employees. In a statement released on Tuesday, 19, the company reported that it will no longer produce trucks and also the compact Fiesta, both made in the plant in the American automaker since 1967, when it acquired the Willys Overland from Brazil. The closure will take place throughout this year. The company claims need to regain sustainable profitability of its operations in South America, where it recorded losses of $ $4.5 billion (about $16.6 R billion) between 2013 and 2018. The Brazil accounts for about 60% of the sales of the brand in the region. The President of the ABC metal workers Union, Wagner Santana, summoned the workers to a meeting on Tuesday to discuss strategy. Until then, they were told to stay home. The unit has operated only three days a week. "I believe that we can reverse that decision and I think Governments should participate in this discussion because, in addition to the direct jobs, there are many other indirect that will be affected," said Santana. Idleness last year were produced in all, 42000 vehicles, which represents less than 20% of the capacity of the factory. The volume represents 15% of the total of vehicles made by the brand in Brazil, which also has factories in Camaçari (BA) – where are made Ka and EcoSport-, and an affiliate of Taubate engines, in addition to a proving ground in Tatuí (SP). "Ford is committed to South America through building a profitable and sustainable business, strengthening the supply of products and working with a business model more agile, compact and efficient," said company President, Lyle Watters. Several months ago circulated rumors that the group might even get out of Brazil. Ford goes through restructuring overall after announcement that it will no longer produce various automobiles and will focus on performance in utilities-sports (SUVs) and pickup trucks, strategy that Watters will be replicated in Brazil said. According to the Executive, in the whole region there will be 20% reduction of staff costs and administrative structure. He cited yet expansion of global partnerships, such as the recent Alliance with Volkswagen, to develop pickup trucks. The company does not report the number of workers who will be laid off, because it will keep your on-site administrative headquarters. By the data of the Steelworkers Union, the unit has 2000 employees in production, about 800 on the administrative and hundreds of subcontractors. In all, Ford has sold vehicles in the country in 2018 226,400, remaining in fourth place among the major automakers, with 9.17% share in sales of cars and light commercials. Most of these vehicles come from the factory of Camaçari. Reserve for claims Ford booked $ $460 million (approximately $1.7 R billion) to pay severance to workers, suppliers and dealers. The Group has 97 dealers of trucks, vehicles that are made only in Brazil. According to the group, most of these non-recurring expenses will be recorded in the balance of this year. The values are part of the $ $11 billion as the company anticipates using for the restructuring of its businesses around the world. Only in 2018, the group that came to Brazil 100 years ago had operating loss of $ $678 million in the region, where it also has factory in Argentina. Recently, Ford announced the end of production of Auto Focus in this factory that will keep only the production of the Ranger pickup. Ford did not disclose what she intended to do with the huge building where the ABC production lines. The move comes after ' threat ' of GM's announcement of closing of the Ford plant in the ABC Paulista, birthplace of brazilian auto industry, occurs less than a month after General Motors disclose communicated to employees threatening to leave the country. The reason are also high losses that the group claims to register in South America in the past three years. In a recent interview to the State, however, the President of GM Mercosur, Carlos Zarlenga said that negotiations with employees, suppliers, resellers and Governments to approve a feasibility plan for the business in the country "are going well". Also stated view chances of the American array approve investment plan of R $10 billion in factories of São Caetano do Sul and São José dos Campos (SP). For the consulting partner Bright, Paulo Cardamone, Ford's decision, "from a financial point of view is correct and will help improve your results. With that, the Group may be better prepared for the growth of the Brazilian market. In your opinion, the ABC factory is old and "would probably be more beneficial to build a new than modernizing the plant" to receive more modern products. Besides, he points out, most of the new plants has been built with subsidies offered by the States. In 2018, Brazilian automakers received $ $15 billion ($54 billion) in loans from the arrays, according to data from the Central Bank. "This movement means that the arrays need to send oxygen to branches that are dying, drowned," said Vice President of Ford South America, Rogelio Goldfarb. In the years of calm, however, were local subsidiaries who sent money to the arrays. In 2010, for example, were shipped $ $5.7 billion ($20.5 billion) in profit. Acquisition timeline (1967): Ford starts activities in São Bernardo do Campo, to acquire the Willys Overland. Their assembly lines came out models like Jeep Willys, Rural, Steed, Maverick, Del Rey, Pampa, Escort, Ka, Fiesta and Courier. Partnership with Volkswagen (1986): is created the Autolatina, a joint venture between Ford and Volkswagen which lasted until 1996. ' Red Collars ' (1990): Occurs in June, the "red collars ' strike", started in the tooling, where employees wore coats with red collars. Gradually, the entire production was stopped and the movement, which was claiming salary increase, lasted 51 days. During the protests, rent and facilities were destroyed. Dismissal for Christmas (1998): on the eve of Christmas, the company sent letters of resignation to 2800 employees, leading to the arrest of a 50-day strike. After agreement, company made Pos. Trucks on ABC (2001): the factory of Ford trucks, which operated in the neighborhood of Ipiranga, in São Paulo, has been integrated at the premises of the greater ABC. Union Party (2013): Ford launches the new Fiesta, a global car, at a party at the City Hall with the participation of the ABC metal workers Union – with a speech by the then Union President, Rafael Marques. Bachelor Party (2019): Ford announces end of the factory's activities.