F Ford Motor Company

   By Stephen Nakrosis 
 

Ford Motor Co. (F) on Tuesday said the company would exit the heavy commercial trucks business in South America.

Ford said the move was "a key step toward returning its South America operations to sustainable profitability."

Ford will cease production at the Sao Bernardo do Campo plant in Brazil sometime this year, ending sales of the Cargo lineup, F-4000 and F-350 once inventories are sold, the company said.

Sales of the Fiesta small car will also end, Ford said.

The company said it anticipates taking pre-tax special item charges of about $460 million. About $100 million will be in non-cash charges for accelerated depreciation and amortization. About $360 million being paid in cash and will go to separation and termination payments for employees, dealers and suppliers.

The company "remains committed to South America with a lean and agile business model, strengthened product offerings and global partnerships," Ford said.

The decision to exit the heavy truck business came after months of looking at alternatives, which included exploring partnerships or a sale of the operation, Ford said. "The business would have required significant capital investments to meet market needs and increasing regulatory costs with no viable path to profitability."

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

February 19, 2019 14:05 ET (19:05 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.