The auto industry is that business sector which has a significant amount of scope, but currently, this sector is facing some difficult situations form last couple of years. Ford recently announced that it would stop selling its commercial vehicle in South America region where the company struggled a lot from last few years. According to reports Ford has decided to close down its Sao Bernardo do Campo production plant in Brazil, and it will stop selling Cargo lineup, F-4000 and F-350 trucks. South America has been a struggling region for Ford because it did not manage to earn a right amount of revenue from there and now company’s officials have decided to take a significant decision of closing down commercial vehicle plants. Currently, every car manufacturing company is trying to diversify its business to sustain in the future, and that’s why major companies like General Motors has also shut down its production plant in North America.
According to reports, the company is trying to reconstruct its major operations worth of more than $11 billion. Ford is trying to enter into electric vehicles industry since fuel based cars are getting obsolete from the market because of low demand. Companies like Tesla, GM has already started working at more significant capacity to produce electric vehicles, and it seems like Ford also wants to join that list.
South America region is not that much profitable for Ford since majority of the people have less buying power in there. Ford is trying its best to get a stable position in the auto industry. A few days ago the company said that they are entering into a joint venture with German automaker Volkswagen. Now some experts are saying Ford’s move of closing down commercial vehicles plants in South America is good and it might improve its financial position.