Thank you Ford!
Reuters / May 21, 2019
Volkswagen AG truck brand Scania said on Tuesday it will invest 1.4 billion reais (US$344.14 million) to modernize its Brazilian factory in Sao Bernardo do Campo, an industrial city near Sao Paulo.
The investment in the historic center of Brazil’s auto industry follows Ford Motor Co’s decision to exit the heavy truck business in South America and shut down its plant in the same city, which could benefit the remaining players in the sector.
During the first four months of 2019, sales of Scania heavy trucks increased 31% compared to the same period a year ago, according to data compiled by local automakers association Anfavea.
The investment comes at a time when the state of Sao Paulo, which long dominated the Brazilian auto industry, has seen auto companies set up factories elsewhere, lured by tax incentives.
Earlier this year, General Motors threatened big cuts in its Sao Paulo factories. That prompted state governor Joao Doria to negotiate aggressively, ending in the launch of a new incentive package for auto makers in the state. GM then decided to invest $2.7 billion to take advantage of the tax program.
The new Scania investment will start in 2021 and end in 2024, following its 2016 to 2020 investments, which total 2.6 billion reais, the company said in a joint statement with the Sao Paulo state government.
Scania’s latest financial commitment is aimed at overhauling its assembly line, as well as introducing a new generation of trucks in Latin America.
The unfortunate thing about the 401A package is that the 3 colors are Black, a blue so dark you need a color analyzer to show it isn't black (hence the blue thread) and red. Anyone who wants a light color interior is left out. Situation is worse with other performance Fords. The ST models and the former SHO and Sport models only offer black.
I don't think they'll do away with the gas version before the complete end of production, it just seems to be apparent the emphasis is on the Hybrid which fits the corporate push for hybrid everything.
Yeah IMO the faster Farley hits the road, the better. I've always liked Joe Hinrichs (even though I questioned a few of his decisions a few years ago) and I'm glad to see him seemingly finally being positioned to take over once Hackett decides his work is done.
I do still have a problem with Hackett's overuse of hyperbole. We get it, you know a lot of big words. Quit showing off.
Is he? From today's Detroit News:
"In a note, Bank of America Merrill Lynch analyst John Murphy appeared to disagree. He wrote that the final phase of Hackett's turnaround gives "credence" to the slower approach for which he was criticized — most openly by Morgan Stanley's Jonas.
"Ford has made a number of one-off announcements on various restructuring actions, which are starting to add up," Murphy wrote. "In our view, Ford's workforce reduction announcement ... illustrates that the company's ongoing efforts are very much concrete, and should start to be better appreciated by the investment community. Ford's 'Tough' days are starting to fade into the rearview."