In 1957, then-Brazilian President Juscelino Kubistchek promoted a plan to manufacture cars in Brazil for the first time. More than 60 years later, however, the auto industry in Brazil is still struggling and has had problems adapting to global trends. As a result, carmakers continue to rely on government subsidies, which, with Brazil’s sluggish economy, have become less and less reliable.
Last month, the Ford Motor Company announced it was shutting down its plant in São Bernardo do Campo—an industrial region on the outskirts of São Paulo. While 3,000 people are employed in Ford’s factory, its closure would threaten the jobs of some 24,000 workers, considering the production chain as a whole.