Ford Motor Company’s (F - Free Report) Brazil unit has made the announcement of initiating a voluntary layoff program for the plant in Camacari, Bahia, per Reuters. The company informed that this move is in sync with the strategy of restructuring operations and cutting the excess workforce.
The exact number of employees to be laid off has not been revealed by the company. However, the plant in Camacari produces the compact Ka and mid-sized EcoSport SUV, and employs 7,400 people. Earlier, Ford revealed that the plant was operating with 700 excess workers.
Notably, the company sold 24,000 Ka vehicles in Brazil in first-quarter 2019, almost flat year over year. Also, it sold 7,600 EcoSports, more than 7,000 reported in first-quarter 2018. A couple of months ago, as part of its restructuring move and to cut losses, the company made the announcement of closing the oldest plant in Sao Bernardo do Campo, Brazil. This move could lead to the layoff of 2,700 workers.
Nevertheless, the recent move to initiate a voluntary layoff program for the plant in Camacari, Bahia, is due to its objectives to align the workforce with current market demand.
Shares of Ford have outperformed the industry it belongs to in the past three months. Over this time, it has gained 4.4% against the industry’s decline of 2.1%.
Zacks Rank & Stocks to Consider
Ford currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are Geely Automobile Holdings Ltd. (GELYY - Free Report) , Ferrari N.V. (RACE - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) . While Geely currently sports a Zacks Rank #1 (Strong Buy), Ferrari and Fox Factory carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Geely’ long-term growth rate is projected at 7%. Over the past three months, shares of the company have gained 54.2%.
Ferrari has an expected long-term growth rate of 18.5%. Shares of the company have gained 23.1% over the past three months.
Fox Factory has an expected long-term growth rate of 15.1%. Over the past three months, shares of the company have risen 18%.
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