From President Trump’s criticizing Tweets to threats of “big border tax”, the start of the year has been slightly rocky for Ford. However, despite new Presidents threats, Ford created a great deal of jobs in Michigan and managed to invest millions toward factory expansion in the state.
Yet recently Ford says that an alteration in the ways it looks at its pensions could be the cause the of a net income drop by $2 billion for 2016.
The change that Ford made goes as far back as 2015. The automaker altered the way losses and gains of pension are measured. They are measured the year they occur. The automaker claims its pension plan was underfunded 2016 by $8.9 billion. Much higher than the $8.2 billion funding from 2015.
Ford plans to record the charge of pretax for pension to be around $3 billion for the year. Loss won’t have any effect on the pretax. The automaker still has hopes of meeting $10.2 billion goal of pretax profit that it adjusted for last year.
