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...