Ford spent US$ 200 million on cancelled Mexican plant
Ford Motor Company took a nearly US$ 200 million hit from costs related to canceling the US$ 1.6 billion small car plant in Mexico, according to its fourth-quarter report (PDF).
The Dearborn, Michigan, automaker posted a US$ 783 million net loss compared with a US$ 1.9 billion profit from a year ago. The loss was due largely to a US$ 3 billion noncash adjustment of pension obligations and a US$ 199 million charge for halting construction of the Mexican factory.
Ford said overall it will save US$ 500 million by consolidating small car production planned for the new assembly factory at an existing plant in Hermosillo, Mexico.
Net income reached at US$ 4.6 billion, almost US$ 2.8 billion less than a year earlier. But Ford said its pretax profit for the year hit US$ 10.4 billion, the second-best ever, while revenue rose slightly to US$ 151.8 billion.