Detroit Bureau on Twitter

Posts Tagged ‘South America news’

Is Ford Ready to Drive Out of South America?

J.P. Morgan reports Ford execs considering alternatives to stanch “unacceptable losses.”

by on Nov.22, 2017

Ford CEO Jim Hackett continues examine the company's operations, including a potential exit from all or part of South America.

Stung by heavy, ongoing losses that seem to have no end in sight, Ford Motor Co. reportedly is looking at options that could include “selective exits” from emerging markets, notably South America.

Such a move would echo the strategy taken by General Motors since Mary Barra came aboard as CEO nearly four years ago, the automaker pulling out of markets including Russia and India. Since assuming the chief executive post at Ford in May, Jim Hackett has promised to rethink the automaker’s entire strategy, leaving open the prospect of some radical moves.

Industry News!

Among the options, Ford leadership is considering, “an out-of-the-box transformational plan to stanch what it deems as unacceptable losses in South America which we expect could be announced over the short-term. Ford is evaluating strategies in relation to doing business in emerging markets overall,” J.P. Morgan analyst Ryan Brinkman wrote in a note to investors. “It could also entail selective exits from certain markets.” (more…)