SAO PAULO (AP) — Ford Motor said on Monday it will close three plants in Brazil and stop producing automobiles in the South American country.

The company said in a statement it will cease production immediately at the factories "as the COVID-19 pandemic amplifies persistent industry idle capacity and slow sales that have resulted in years of significant losses."

The automaker also said it will keep its South America headquarters, product development center and proving grounds in Brazil.

"With more than a century in South America and Brazil, we know these are very difficult, but necessary, actions to create a healthy and sustainable business," said Jim Farley, Ford president and CEO. "We are moving to a lean, asset-light business model by ceasing production in Brazil and serving customers with some of the best and most exciting vehicles in our global portfolio."

Ford's decision is yet another blow to Brazil, whose economy has suffered since 2014, sinking further amid the pandemic. The country's unemployment rate is nearing 15%, a figure that economists consider to be largely underestimated.

Ford also said its Brazilian clients will have their needs met with cars sourced from Argentina, Uruguay and other regions.