Ford Motor Co. is on the verge of taking dramatic action to turn around its money-losing business in South America, including possibly exiting some markets in the region, a JPMorgan analyst said after meeting with two of the company's top executives.
"Ford seems to be working on an out-of-the-box transformational plan to stanch what it deems as unacceptable losses in South America, which we suspect could be announced over the short-term," auto analyst Ryan Brinkman wrote in a note to investors Tuesday.
Brinkman said the company may work more closely with rival automakers, "perhaps even via some sort of formal tie-up. It could also entail selective exits from certain markets."
South America remains important to Ford’s business operations and the company will continue to focus on making it “operationally fit,” spokesman Said Deep said.