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.