- The stock price of Ford Motor Company (NYSE: F) increased by 5.27% as it went from a previous close of $9.29 to $9.78. This is why it happened.
The stock price of Ford Motor Company (NYSE: F) increased by 5.27% as it went from a previous close of $9.29 to $9.78. One of the reasons why the stock price increased might be related to the company announcing the closing of manufacturing operations in Brazil.
On Monday, Ford said it is going to close 3 plants in Brazil and it will stop manufacturing automobiles there. Ford Brazil is going to cease production at the Camaçari, Taubaté and Troller plants this year as the COVID-19 pandemic amplifies persistent industry idle capacity and slow sales that have resulted in years of significant losses. Ford is going to maintain its South America headquarters, product development center, and proving grounds in Brazil
“With more than a century in South America and Brazil, we know these are very difficult, but necessary, actions to create a healthy and sustainable business,” said Ford president and CEO Jim Farley in a statement. “We are moving to a lean, asset-light business model by ceasing production in Brazil and serving customers with some of the best and most exciting vehicles in our global portfolio. We will also accelerate bringing our customers the benefits of connectivity, electrification and autonomous technologies to efficiently address the need for cleaner and safer vehicles well into the future.”
Disclosure: I have a small F position in my stock portfolio