Ford closes factories in Brazil, 5,000 layoffs expected
500 Ford employees demonstrated at the Taubaté site, near Sao Paulo (south-east), on January 12, 2021. REUTERS - STRINGER
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In Brazil, Ford's decision to pack up and close its three factories is causing a lot of reaction.
The workers demonstrated against the 5,000 planned layoffs.
And the governor of Bahia warns of the effects of deindustrialization in Latin America's largest economy.
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Brazil is turning into a
big fazenda
, says Rui Costa.
The governor of the state of Bahia, where Ford will close one of its three factories in Brazil, says the country is losing its industries and becoming "a large agricultural farm", reports RFI correspondent in São Paulo,
Martin Bernard .
The Latin American giant is indeed one of the largest producers and exporters of cereals, meat and coffee, but its automotive industry is hardly competitive.
It would depend more and more on raw materials, the prices of which are volatile and depend on international markets.
Pass of arms between Jaïr Bolsonaro and Ford
Before putting an end to a hundred years of presence in Brazil, the American manufacturer claimed to no longer be able to accumulate losses.
In a statement released Monday, January 11, Ford invoked the Covid-19 pandemic, "
which has only increased unused production capacity
".
False, replies President Bolsonaro.
“
Ford is actually asking for subsidies,
” he says.
No question of giving them more ... The president of the Chamber of Deputies, Rodrigo Maia, affirmed Monday that "
the closure of the Ford factories (was) a demonstration of the lack of credibility of the Brazilian government
".
Thousands of jobs at risk
Several thousand demonstrators protested, in front of the Camaçari factory, in the state of Bahia, but also on the Taubaté site, near São Paulo.
These closures are expected to result in nearly 5,000 layoffs in Brazil.
In an attempt to find a buyer for the Ford factories, the Brazilian authorities are now turning… to China.
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