Ford Announces Q4 Charges

Ford Motor has announced it will record pretax charges totaling $600 million in its fourth-quarter results. These charges are related to adjustments in its employee pension plans and other post-retirement benefits.

The Detroit-based automaker stated that these special charges will impact its net income but not its adjusted financial results or cash flow.

Details of Charges

• Total Pretax Charge: $600 million
• Impact on Net Income (After-tax): Approximately $500 million decrease.
• Cause for U.S. Plans: Primarily actuarial losses compared to plan assumptions.
• Cause for Non-U.S. Plans: Mainly changes in key measurement assumptions, such as improved life expectancy.

Financial Status and Future Outlook

Ford affirmed that its retirement plans remain fully funded. The company's expectations for pension contributions in 2026 are unaltered by these charges.

These new charges are in addition to approximately $19.5 billion in special items previously disclosed last month. Those items were connected to a restructuring of business priorities and a reduction in all-electric vehicle investments, with most of these impacts expected in the fourth quarter.

Ford is scheduled to release its fourth-quarter results after markets close on February 10.