Ford Motor on Thursday reported a fourth-quarter loss, mentioning an accounting change to pensions and expenses for canceling a factory in Mexico, which President Donald Trump had targeted on his way to the White House.
Ford likewise reaffirmed its projection that 2017 profits would be lower, which contrasted with more positive forecasts from Detroit competitors General Motors and the United States operations of Fiat Chrysler Automobiles NV. Shares of Ford were down 3.2 percent at $12.38.
Ford’s fourth-quarter outcomes took a $200-million hit from expenses connected to canceling a $1.6-billion small vehicle plant in Mexico that had ended up being a target for Trump throughout his campaign in 2016.
Ford stated overall it will save $500 million by combining small car production prepared for the new assembly factory at an existing plant located in Mexico.
When it stated it was canceling the Mexican plant previously this month, Ford stated it would bring 700 jobs in Michigan tied to production of electric and self-driving automobiles. The Detroit factory that develops the existing Ford Focus small car will be transformed to assemble pickup trucks and a brand-new Bronco sport energy.
The automaker stated the decision was driven by slack demand and weak pricing for cars, however Ford executives stated they were motivated by Trump’s pledges of corporate tax cuts and regulatory relief.
Chief Financial Officer Bob Shanks stated Thursday Ford would wait for particular policies of the Trump administration for getting an idea of how they will impact the automaker’s future investment plans. “We are watching,” Shanks stated.
Ford has enough plants in the United States presently and is not planning on building a new one, Ford Chief Executive Mark Fields told Wall Street experts Thursday. He included that the automaker has expanded some plants including the one that will bring 700 jobs near Detroit.
Ford’s results and its downbeat outlook indicate other obstacles automaker beyond plant investments.