Ending the sale of heavy commercial vehicles, including the F-350, will result in the company ceasing production at its São Bernardo do Campo plant in Brazil during 2019 - Photo courtesy of Ford.

Ending the sale of heavy commercial vehicles, including the F-350, will result in the company ceasing production at its São Bernardo do Campo plant in Brazil during 2019

Photo courtesy of Ford.

Ford is ending its commercial heavy truck business in South America, ceasing production of its Cargo lineup, F-4000 and F-350, as well as its Fiesta, and redirecting its focus instead on SUVs and popular pickups in the region.

Ending the sale of these vehicles will result in the company ceasing production at its São Bernardo do Campo plant in Brazil during 2019, according to a release from Ford. Other recent initiatives of Ford in the region included reducing salaried and administrative costs region-wide by more than 20%; strengthening its portfolio of SUVs and pickups; and leveraging global partnerships, such as the recently announced alliance with VW to develop mid-size pickup trucks.

The decision to exit the heavy commercial trucks business came after months of pursuing viable alternatives, including possible partnerships and a sale of the operation, as a way of returning its operations in the region to sustainable profitability.

The company expects to record pre-tax special item charges of about $460 million, and roughly $360 million will be paid in cash and are primarily attributable to separation and termination payments for employees, dealers, and suppliers, Ford said in a release.

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