Brazil: Ford's Recovery Template?

Robert Farago
by Robert Farago

Reuters seems to think so. "Seven years ago, Ford in Brazil looked a lot like it does today in the United States. It was losing so much money and market share that executives at headquarters in Michigan were seriously considering pulling out of South America altogether." And now? "Today, Brazil is Ford's biggest success story, helping to offset hefty losses in North America. Ford Brazil has doubled its market share to 12 percent, racked up 15 straight quarterly profits, and is now scrambling to keep up with red-hot demand for its cars and trucks." OK, you got our attention. So what's the recipe for success? A cheap SUV, that "rising tide lifts all boats" deal (Brazil's economy is go!), job cuts and a new, highly efficient, low-cost, supplier friendly manufacturing complex in Bahia. And there you have it. What's next for FoMoCo's turnaround poster child? Not much. Which is not good. "Some of Ford's rivals, however, are rolling out new models at a faster pace. That has some analysts wondering if Ford is playing it too safe in Brazil now that the turnaround is over." Hmm. I'm thinking that this situation reminds me of Ford's '90's-era Explorer-related success. Which would make Ford of North America Ford of Brazil's template for success. Uh-oh.

Robert Farago
Robert Farago

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  • Johnson Johnson on Nov 28, 2007
    Which would make Ford of North America Ford of Brazil's template for success. Uh-oh. Certainly seems like it. Ford spelled sideways is DORF. Comedy gold.
  • Sajeev Mehta Sajeev Mehta on Nov 28, 2007

    Time to start making Euro-Fords in Brazil. Maybe they can drop a few Mondeos in Mercury's empty plate too, no?

  • Starlightmica Starlightmica on Nov 28, 2007

    Sajeev: Can't find the article, but somewhere not long ago I read that a side effect of Ford Brazil's Ecosport boom is that there isn't any spare capacity, everything built goes to their domestic market.

  • SLLTTAC SLLTTAC on Nov 28, 2007

    Ford Brazil gets its Fusions from Mexico, as North America does. In Brazil the four-cylinder Ford Fusion is a very upmarket car. I don't think that Ford offers Brazilians the European Mondeo.