How Ford burned $12B in Brazil (2021) (reuters.com)

by kaycebasques 48 comments 67 points
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48 comments

[−] locao 55d ago
This article is wrong at its core.

> The study was commissioned by Brazilian auto industry group Anfavea

Nothing that comes from Anfavea is trustable. It's a crooked association of a few automakers that will try to push the government to give every subside to them and tax the other ones to the brim.

The article tries to justify Ford Mexican cars low sales numbers in Brazil using every flawed argument Anfavea uses. For instance:

> On Thursday, Ford launched its new Bronco Sport SUV in Brazil. Made in Mexico, it is exported to the U.S. where it starts at $26,820. In Brazil, where per capita income is much lower, Ford said the Mexican-made car will retail for $48,000.

The key point here is "starts". Ford only imports top of the line cars in Brazil. I just searched Bronco Sport prices in Mexico in 2021, they started at $30900 up to $40000+. That $40000+ version was (still is) the only one sold in Brazil. 20% over the retail price in Mexico is not great, but far away from what the article tries to imply.

[−] cladopa 55d ago
It must be said: Mr Ford created way more wealth in the world than what it destroyed.

For example, the Japanese discovered that importing Ford cars from Japan was cheaper that manufacturing those in Japan, including all the shipping cost.

The same happened in Russia, Germany and most places of the West world.

The new manufacturing method was a revolution that have generated trillions.

[−] sidewndr46 55d ago

> the Japanese discovered that importing Ford cars from Japan was cheaper that manufacturing those in Japan

maybe I just don't understand, but something seems off with this statement?

[−] Hasslequest 55d ago
I think what they're getting at here is that it's cheaper for countries to import the car from themselves because you don't have to cover the cost of manufacturing, just the cost of transport (which is low, because you are importing it from yourself).
[−] sushid 55d ago
to Japan* I think
[−] lysace 55d ago
And now an authoritarian one-party country (I think it's decidedly sliding into a dictatorship) is winning car manufacturing - and possibly almost all of manufacturing except high-end semiconductors and optics.

The future is going to be interesting. :/

[−] tehjoker 55d ago
I don't buy this but even if it were true, you could say the same if America was winning.
[−] lysace 55d ago
Not quite, but more importantly: American isn’t.
[−] SPascareli13 55d ago
Interesting aside, BYD (Chinese EV automaker) has took over production in the old Ford factory in Camaçari.
[−] luqtas 55d ago
they also managed to buy and destroy a really proeminent 4x4 national company [0] it's tech was of course, eaten by them

[0] https://en.wikipedia.org/wiki/Troller_Ve%C3%ADculos_Especiai...

[−] dmoo 55d ago
[−] manarth 55d ago
[−] dartharva 55d ago
Ford burnt a lot in India too iirc, it had to exit the market rather unceremoniously