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Ford South America

Financial Health

In 2013, Ford’s automotive pre-tax profit was the highest in more than a decade, with about break-even results in South America. Our South American pre-tax profits were substantially lower than a year ago, in part due to higher costs and unfavorable exchange. However, our 2013 market share for South America increased slightly compared to 2012. Brazil and Argentina are our highest-volume South American markets; our market shares for these two countries are shown in the table below.

South American Market Share

Major Markets 2013 Combined Car and Truck Market Share (%) Percentage Points Better/(Worse) than 2012 (%)
Total South America 9.3 0.3
Brazil 9.4 0.3
Argentina 12.6 0.3

In South America, we are investing in global platforms to deliver global products, with 18 product actions (i.e., new or remodeled products) in 2013. Our strategy is focused on improving both quality and customer experience. In 2013, Ford South America began offering versions of our global small and midsize vehicles, including Fiesta- and Focus-sized small cars and utilities, and Fusion- and Mondeo-sized midsize cars and utilities, as well as compact pickups and commercial vans.

Brazil is the world’s fourth-largest auto market and is a critical piece of Ford’s global strategy. Going forward, we are making our largest-ever five-year investment in our Brazil operations, committing $2.07 billion (USD) or R$4.5 billion by 2015 to accelerate the delivery of more fuel-efficient, high-quality vehicles and offer a lineup that consists of 100 percent global products. Other investments include:

  • $1.2 billion to increase the capacity of our Camaçari Plant, develop a new global vehicle (the Ford EcoSport), and modernize our Troller Plant, and R$400 million ($184 million) to build the first engine plant in the Northeast of Brazil.
  • $230 million in modernization and expansion of the Taubaté Engine and Transmission Plant.
  • $308 million from 2007 to 2013 in heavy truck operations, including production of the extra-heavy-duty Cargo truck.
  • $368 million for production of the new Fiesta hatchback global vehicle in São Bernardo do Campo.
  • $34 million to produce the Fiesta sedan in the Valencia Assembly Plant.
  • $200 million (including $60 million invested in supply chain development to improve local parts sourcing) to produce the new Focus, creating 300 new jobs.

We implemented several exciting product launches in South America in 2013, including the Fusion flex-fuel, the new Fiesta hatch and sedan, the new Focus, the new Kuga, the Fusion Hybrid and the new global line of Cargo (Cargo 2042 and Cargo 2842) trucks for the heavy-duty segment. In 2014 we also began production of two F-series trucks, the F-350 and F-400.

We know that our long-term success in the developing and revitalizing economies of South America will depend on our company offering new types of mobility solutions that are increasingly sustainable and tailored to the unique needs of these markets. The section on our sustainable mobility strategy describes how we are aiming to do just that.

For a discussion of our global economic impact and financial health, please see the Financial Health section.

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