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General view of thousands of Ford cars sitting on a lot in the industrial park of Sao Bernardo do Campo in Sao Paulo, Brazil. (File photo) (AFP)
General view of thousands of Ford cars sitting on a lot in the industrial park of Sao Bernardo do Campo in Sao Paulo, Brazil. (File photo) (AFP)

Brazil President Jair Bolsonaro slams Ford for ending operations in the country

Ford said on Monday it will close its three plants in Brazil this year and take pretax charges of about $4.1 billion as the Covid-19 pandemic amplified the company's under use of its manufacturing capacity.

President Jair Bolsonaro criticised Ford’s decision to pull out of Brazil, alleging the company was seeking tax breaks and subsidies to compete with other automakers.

“People complained about the Ford factories," Bolsonaro told supporters outside his official residence in Brasilia on Wednesday. “I’m sorry, but I will no longer keep spending your money to support their factories."

Earlier this week, Ford Motor Co announced it would cease its manufacturing operations after a century in Brazil, shuttering three plants and terminating about 5,000 jobs by year-end as part of a global restructuring. It was a symbolic blow to the Bolsonaro administration, which has pledged to boost South America’s largest economy through business-friendly policies and austerity measures.

The company cited an “unfavourable economic environment and the additional burden of the pandemic" in its announcement of the restructuring on Monday. It declined to comment further on Bolsonaro’s remarks.

The Brazilian president has since accused Ford of trying to obtain additional subsidies to keep its Brazilian operations afloat. He said on Tuesday that the company had received nearly 20 billion reais ($3.77 billion) in assistance in recent years, without providing further details.

“The factory closed due to competition, there is no more subsidy from us," Bolsonaro said Wednesday.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

  • First Published Date : 14 Jan 2021, 09:57 AM IST