The US carmaker blamed the pandemic, which it said had amplified years of poor sales and "significant losses" in the region.
About 5,000 people, mostly in Brazil, are expected to lose their jobs.
The decision is part of a global restructuring by Ford as it tries to improve its financial performance.
"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 Ford chief executive Jim Farley.
Before the Covid outbreak, Ford had announced plans to scale back in several markets, with closures in countries that included Brazil, the UK, France, Germany and Russia.
It cut hundreds more jobs last year amid a downturn in car sales due to the pandemic.