In July 2018, Ford Motor Company (NYSE: F) announced a major restructuring aimed at significantly improving its profitability. As part of this “global redesign” project, the automaker said that it would incur up to $11 billion of pre-tax charges (including $7 billion of cash impacts) over three to five years in order to close plants, exit markets, and form strategic partnerships.
However, Ford has moved at a glacial pace in its restructuring effort. In the first two-plus years after the initial announcement, Ford incurred just $4.2 billion of pre-tax charges, with a cash impact of $1.5 billion.
That’s finally about to change. Earlier this week, Ford announced that it will wind down manufacturing in Brazil and restructure its product portfolio in South America. That should help it address a years-long string of massive losses in that region.