Here's What It Cost Ford to Abandon That Mexico Car Plant Trump Disliked

Ford revealed Thursday the price paid for its aggressive push to curry favor with President Donald Trump: $200 million.Within fourth-quarter results that met analyst expectations, Ford said it took a $200 million charge to cover the cost of abandoning a small-car factory in Mexico that would have built the Focus compact. The automaker announced the turnabout earlier this month after Trump, as candidate and president-elect, sharply criticized its plans south of the border.The move may end paying off in the long run and is peanuts for a $49 billion company. Ford said it's actually saving $500 million by not completing construction of the Mexico factory. Since that decision, the automaker has worked its way into Trump's good graces and is now looking to parlay that relationship into more lenient regulations and tax breaks that could boost profits. Chief Executive Officer Mark Fields met twice this week with Trump, who also speaks regularly with Executive Chairman Bill Ford.The jockeying underscores how Ford's financial well-being will be linked the next four years to the whims of a White House taking special interest in where cars are built and how fuel efficient they'll have to be.  Continue reading...

Read More

Copyright The Dallas Morning News
Contact Us