By on November 20, 2009

As long as the incentives last...

While Ford are making some headway in North America, their real Western Hemisphere focus is on the growth market of Brazil. Bloomberg reports that Ford will invest 4 billion Brazilian Reals (that’s $2.3 billion to you lot, I only deal in UK pounds) on Brazilian production capacity. Naturally, Ford aren’t doing this alone, the Brazilian government are offering the usual (as yet undisclosed) state and federal tax breaks to Ford. The investment will add to Fiesta capacity at the Camacari factory and help modernize the Troller plant that builds utility vehicles. Ford’s Q3 pretax profit in South America fell nearly in half to $247 million, as revenue dropped 22 percent to $2.1 billion. Though Ford blames currency issues for the drop, soon-to-expire government incentives have been keeping the Brazilian market afloat. Maybe it’s not “Fiesta” time yet.

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15 Comments on “Ford Invests Big In Brazil...”

  • avatar

    Brazil is supposed to be an up-and-coming “major” economic power, perhaps on the order of China, in a few years. So it makes sense to be on the ground floor, as the cliche goes, especially since Ford was late to the Chinese market.

  • avatar

    “Ford aren’t”?? I thought there was only one Ford, so who are all the other Fords you are referring to – just asking?

  • avatar

    Actually it should be Ford isn’t instead of Ford aren’t.  Paul aren’t going vs. Paul isn’t going, which sounds like proper english?  singular vs. plural.

    • 0 avatar
      Daniel J. Stern

      Actually, in British English, companies are referred to in the plural: Ford aren’t releasing the new Ranger in the U.S., GM have released their latest financial-performance figures, and Chrysler are in limbo. I find this convention a good deal more sensible and realistic than the American convention of referring to companies in the singular; the British usage accords with the reality that corporations are not monolithic entities, but rather are made up of many individuals making decisions and taking actions.
      We do it in North America, too, along arbitrary lines: Did you stop by NAPA and get my carburetor cleaner? No, they were closed.

    • 0 avatar
      Robert Schwartz

      Way back in the old days, when I was a wee sprout, the old timer’s called it Ford’s, as in: “Yeah, I used to work at Ford’s but my back went bad, and I had to quit.”

    • 0 avatar

      @ Robert Schwartz,
      Have you not been in Michigan lately? Most everyone still applies the possessive  to all businesses. I’m going to Miejer’s, I worked at Ford’s, etc.
      Also, on topic, Ford should be investing in Brazil. As long as socialist tendencies are held at bay in South America, and probably in spite of them anyway, it will be a growth market and essential in the amortization of costs to making small vehicles profitable in the US.

    • 0 avatar
      Daniel J. Stern

      Yeah, that’s a strange possessive but you hear it all over Michigan. “He works for GM’s”, “I worked for Chrysler’s for twenty years”, “I’m going to work at Ford’s”.

  • avatar

    As I understand it, a corporate entity is considered an ‘artificial person’.  Therefore singular seems right . . .

    • 0 avatar
      Daniel J. Stern

      Thinking of a corporation as a person is unrealistic on its face—in fact, corporations are made up of many individual people making decisions and taking actions—and creates democratically-dubious situations with respect to e.g. political speech and contributions.

    • 0 avatar
      Paul Niedermeyer

      Pick up a UK paper or magazine, and you will find that we don’t have a monopoly on writing English.

  • avatar
    Cammy Corrigan

    Very nice, chaps. Now can we please stick to the topic of Ford in Brazil?

  • avatar

    With GM in such disarray it becomes a no brainer to strengthen their holdings in Brazil. It will be interesting to see what they do in Australia if Holden starts to falter. As the worldwide markets recover Ford should be in a prime position to pick up a lot of sales.

  • avatar

    I saw in another post here the prices that cars sell for in Brazil…Ford would be foolish not to expand there.
    (Notice how I used the subjunctive case to get around the singular/plural issue?)

  • avatar

    Since my earlier humourous post was deleted, I guess I will make a more prosaic comment.
    To remain competitive, Ford has to make the investment in the B-segment … oh, and i am told that Ford will transition to the new Fiesta and put the previous generation out to pasture (at least that is the present plan in Dearborn).
    The truck investment likely reflects tooling and production improvements to produce the T6-platform (replacement of the PN150-platform-based Ranger.)

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