Ford Abandons Brazil

A century ago, Henry Ford lost a considerable amount attempting to become a rubber baron in Brazil. Now, Ford is retreating from Brazil again. Over the past decade, the company lost about $7.8 billion on its Brazilian manufacturing, or about $2,000 per car, so the company exercised its option to abandon. Ford recently announced that it would close its plants in Brazil, paying an additional $4.1 billion to get out of commitments in the country, for a total loss of about $12 billion. Other car companies are also losing money in Brazil, with Volkswagen Brazil losing about $4.1 billion since 2011. Sometimes it is better to abandon a plan rather than continue to lose money.