It seems certain that Brazil has lost to Mexico production of the sedan version of the new Fiesta for the American market.

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Exchange rates, distance and the NAFTA accord are likely reasons. But, on a recent visit here, the automaker’s president of the Americas, Mark Fields said diplomatically: “We have announced we will offer the Fiesta in the US in 2010 but the production site is yet to be decided”.


He said the average American consumer still does not appreciate small cars but fuel prices and environmental pressures are weakening that prejudice. This is also why 50% of Ford’s sales are now cars and crossovers, compared to pickup trucks and SUVs accounting for 70% just two years ago.


Brazilian engineering expertise with compact cars is sure to be used on the Fiesta-USA (B299) project, Fields said. He added that Ford’s Mercosur region production capacity would be boosted by process improvement and integration but no new facilities are planned, at least in the short term.


He told reporters that “much of what has been done here has been applied both in the USA and Europe”. And he noted that 16 consecutive quarters of good operational results was an achievement worthy of close attention within Ford.

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South American operations are now among the automaker’s most profitable worldwide. Last year, the region profited to the tune of $US1.2bn – Brazil accounts for 60% of sales – more than double the 2006 results.


And the Camaçari, State of Bahia, manufacturing facility achieves way above average productivity in internal Ford measurements.


Fernando Calmon