Ford (F) Took A Major Hit On Q4 Earnings Because Of This

Ford announced a Q4 loss on Thursday and cited an accounting change to pensions and costs for abandoning a $1.6 billion car factory in Mexico as the reason.

The car manufacturer also reaffirmed that its 2017 forecast would be lower. This did not please investors and shares fell 3.2% after the news.

The cancellation of the small car plant in Mexico resulted in a $200 million loss from revenues.

According to the company however, thee cancelled plant will save $500 million by consolidating small car production planned for the new assembly factory at an existing plant in Mexico.

President Donald Trump had openly been critical about American car companies having factories below the borders.

Ford Chief Financial Officer Bob Shanks said Thursday that the company would await specific policies of the Trump administration for an idea of how they will affect the company’s future investment plans.

The company reported for the fourth quarter of 2016 a loss of $783 million, or 20 cents a share. It’s revenue fell 4 percent to $38.7 billion in the quarter.

Disclaimer: We have no position in Ford Motor Company (NYSE: F) and have not been compensated for this article.