Back in January, Ford announced it was closing its three plants in Brazil this year and take pretax charges of about USD$4.1 billion as part of the USD$11 billion restructurings that the company claimed was global. What it didn’t announce was how it was turning its back on its Brazilian partners and Ford car owners in the country.

Ford’s announcement came as a surprise to dealerships and car owners all over Brazil. As recent as this past December, Ford was boasting of positive sales numbers and expansion plans to dealerships. Many of these dealers have been in business with Ford for 3 to 4 generations. But out of the blue, Ford decided to close its three-car and parts production plants in Brazil in Camaçari (BA), Taubaté (SP), and Horizonte (CE). The unexpected closure of factories in Brazil alters the basis of the contract between the American car company, dealerships that sell Ford cars, as well as Ford car owners.

Anyone who bought a brand-new Ford car from a dealership no longer knows if their warranty will provide them with the same services for their car. Dealerships are already experiencing a lack of parts due to the shutdown of Ford’s factories. Ford, a company that has been in business in Brazil since 1909, has yet to explain how it will solve this challenge it has created for many car owners.

Additionally, Ford has not explained how it will assist millions of Ford Ka and Ecosport owners (formerly manufactured in Brazil), with a network of distributors three times smaller (as Ford said it wants it to be). There are currently half a million of these vehicles on the roads in Brazil that are still under warranty. Not only that, Ford is trying to force Brazilians to pay premium import prices for cars that used to be priced as domestically manufactured. In this case, 85% of cars that used to be made in Brazil, will require import taxes for parts and upgrades.

It is worth seeing how Ford’s decision dealt a major blow to its brand in Brazil after the announcement. From December to February, sales dropped 77%, and revenue dropped 70%. The market share for Ford in Brazil went from 7% to 2.36%, and it is still decreasing.

The Brazilian Association of Ford Distributors (ABRADIF) has been trying for months to get Ford’s leadership in Brazil to provide assurances to dealerships and car owners. But as of today, local Ford leadership has refused to communicate with anyone, except a few selected dealers. ABRADIF wants to make sure that anyone who owns a Ford in Brazil today will be able to get service and parts for their cars, at a fair rate, based on common warrant rules. This requires that Ford continues to manufacture parts in Brazil for at least six months and also provides compensation to members of ABRADIF who have suffered from the financial impact of Ford’s sudden closure.