Reuters seems to think so. "Seven years ago, Ford in Brazil looked a lot like it does today in the United States. It was losing so much money and market share that executives at headquarters in Michigan were seriously considering pulling out of South America altogether." And now? "Today, Brazil is Ford's biggest success story, helping to offset hefty losses in North America. Ford Brazil has doubled its market share to 12 percent, racked up 15 straight quarterly profits, and is now scrambling to keep up with red-hot demand for its cars and trucks." OK, you got our attention. So what's the recipe for success? A cheap SUV, that "rising tide lifts all boats" deal (Brazil's economy is go!), job cuts and a new, highly efficient, low-cost, supplier friendly manufacturing complex in Bahia. And there you have it. What's next for FoMoCo's turnaround poster child? Not much. Which is not good. "Some of Ford's rivals, however, are rolling out new models at a faster pace. That has some analysts wondering if Ford is playing it too safe in Brazil now that the turnaround is over." Hmm. I'm thinking that this situation reminds me of Ford's '90's-era Explorer-related success. Which would make Ford of North America Ford of Brazil's template for success. Uh-oh.
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Unlike the USA, Brazil has high tariffs on imported vehicles. On a recent trip to Rio de Janeiro, I was surprised how few Asian cars I saw. Ford’s competition in Brazil is mostly Brazilian-made Fiat, GM, Renault, and other marques with little or no presence in the USA. Ford’s Brazilian operations may point the way to greater productivity in the USA, but who wants to buy a Taurus, a dated Focus, or an Explorer?
Once Toyota and Honda set up decent sized Brazilian operations, Ford, Fiat, etc. are toast. The Brazilians will start getting a taste of cars that actually work well and work well for a long time, just like the rest of the world, and, well you know what I always say…. Ford spelled sideways is DORF.
http://www.ford.com.br/
Another thing in common with Ford USA: Ford Brazil also sells the Focus on the original platform, although with the original asymmetric dash and hatch. (Selling prior-gen vehicles is a common practice in developing nations – what does that make us?)
There was talk about exporting Brazilian built vehicles to the US but the EcoSport was deemed too primitive, and there’s now apparently no spare capacity to send Verves up north. Hau Thai-Tang, the project lead for the current Mustang and more recently head of SVT, got rotated down there not long ago.
http://www.edmunds.com/insideline/do/News/articleId=119702
Which would make Ford of North America Ford of Brazil’s template for success. Uh-oh.
Certainly seems like it.
Ford spelled sideways is DORF.
Comedy gold.
Time to start making Euro-Fords in Brazil. Maybe they can drop a few Mondeos in Mercury’s empty plate too, no?
Sajeev:
Can’t find the article, but somewhere not long ago I read that a side effect of Ford Brazil’s Ecosport boom is that there isn’t any spare capacity, everything built goes to their domestic market.
Ford Brazil gets its Fusions from Mexico, as North America does. In Brazil the four-cylinder Ford Fusion is a very upmarket car. I don’t think that Ford offers Brazilians the European Mondeo.