How Ford burned $12B in Brazil (2021) (opens in new tab)

> The study was commissioned by Brazilian auto industry group Anfavea

Nothing that comes from Anfavea is trustable. It's a crooked association of a few automakers that will try to push the government to give every subside to them and tax the other ones to the brim.

The article tries to justify Ford Mexican cars low sales numbers in Brazil using every flawed argument Anfavea uses. For instance:

> On Thursday, Ford launched its new Bronco Sport SUV in Brazil. Made in Mexico, it is exported to the U.S. where it starts at $26,820. In Brazil, where per capita income is much lower, Ford said the Mexican-made car will retail for $48,000.

The key point here is "starts". Ford only imports top of the line cars in Brazil. I just searched Bronco Sport prices in Mexico in 2021, they started at $30900 up to $40000+. That $40000+ version was (still is) the only one sold in Brazil. 20% over the retail price in Mexico is not great, but far away from what the article tries to imply.

I imagine the Bronco was selling way above the Commander price point with less features.

But the real story now is that Chinese makers (BYD, Chery) are expanding rapidly. BYD is selling people on both electric and gasoline cars. Chery has a partnership with CAOA to produce cars in Brazil. Stellantis also builds cars in Brazil. It seems that the best way to sell to the market is to build there, and keep the costs down while hitting the right price point.

For example, the Japanese discovered that importing Ford cars from Japan was cheaper that manufacturing those in Japan, including all the shipping cost.

The same happened in Russia, Germany and most places of the West world.

The new manufacturing method was a revolution that have generated trillions.

[0] https://en.wikipedia.org/wiki/Troller_Ve%C3%ADculos_Especiai...

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