Ford Motor Co. is planning to stop manufacturing operations in Brazil as part of a restructuring that will eliminate 5,000 jobs in the region and result in a charge of about $4.1 billion.
The automaker said Monday it will close two factories in Brazil immediately and a third by the end of the year, resulting in an end to sales of three locally made models. The job losses include employees in both Argentina and Brazil, it said.
The latest streamlining effort will cost the company about $2.5 billion in pretax charges for 2020 and around $1.6 billion this year, Ford said.
“With more than a century in South America and Brazil, we know these are very difficult, but necessary, actions to create a healthy and sustainable business,” Jim Farley, Ford’s chief executive officer, said in a statement.