FORD MOTOR COMPANY (NYSE:F) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05. Costs Associated With Exit or Disposal Activities.
Ford Sollers Netherlands B.V. (“Ford Sollers”), a joint venture between Ford Motor Company (“Ford”) and Sollers PJSC (“Sollers”) in which Ford has control, announced today its plan of March 22, 2019 to restructure its business in Russia to focus exclusively on commercial vehicles and to exit the passenger car segment. In addition, Sollers will take a 51 percent controlling interest in the joint venture.
As a result of these actions, Ford Sollers will cease production in 2019 at the Naberezhnye Chelny and St.Petersburg vehicle assembly plants and the Elabuga engine plant. In connection with this announcement, Ford currently expects to record pre-tax special item charges of about $450 million to $500 million. The charges will include approximately $250 million to $300 million of non-cash charges primarily for accelerated depreciation and amortization, inventory, and deconsolidation adjustments. The remaining charges of about $200 million will be paid in cash and are primarily attributable to separation and termination payments for employees and suppliers. Most of these pre-tax special item charges and cash outflows will be recorded in 2019.
About FORD MOTOR COMPANY (NYSE:F)
Ford Motor Company (Ford) is a global automotive and mobility company. The Company’s principal business includes designing, manufacturing, marketing, financing, and servicing a line of Ford cars, trucks, sports utility vehicles (SUVs), and electrified vehicles, as well as Lincoln luxury vehicles. The Company operates in two sectors: Automotive and Financial Services. The Automotive sector includes North America, South America, Europe, Middle East & Africa, and Asia Pacific segments. Its Financial Services sector includes Ford Credit and Other Financial Services segments. Its vehicle brands include Ford, Ford-Lincoln and Lincoln. The Other Financial Services segment includes holding companies, real estate, and the financing of some Volvo vehicles in Europe. The Company has over 70 plants across the world. Through its wholly owned subsidiary Ford Motor Credit Company LLC (Ford Credit), it provides automotive financing products to and through automotive dealers throughout the world.