Report: Ford May Sell South American Operations

Ford Motor Co. is considering an exit from the South American market, sources tell Bloomberg News.

They say Ford, which operates eight factories in the region, has approached Fiat Chrysler Automobiles and Volkswagen about buying its assets.

Last week Chief Financial Office Bob Shanks told analysts that Ford’s business in South America “lacks a strong competitive position or profit pillars.” But a company spokesman denies the company is considering an exit.

Ford has operated in South American for more than 100 years, Bloomberg notes. Last year the company generated $5.8 billion in sales there. But it hasn’t posted a pretax profit in South America in six years. The company’s business in the region has lost $4.2 billion since then.

CEO Jim Hackett is looking at options to end the losses or dispose of the business as part of the $11 billion companywide restructuring he announced last week, according to Bloomberg’s sources.