Summary
Ford Motor Company announced plans to exit its Bridgend Engine Plant in South Wales, a significant operational restructuring move impacting its UK operations. This decision, subject to employee consultations, is slated for completion in 2020. The company anticipates recording substantial pre-tax special item charges related to this exit, estimated at approximately $650 million. This figure includes both cash and non-cash components, with the majority of charges expected in 2019 and cash outflows primarily in 2020.
Key Highlights
- 1Ford plans to cease production at the Bridgend Engine Plant in South Wales by 2020.
- 2The exit is subject to consultation with employees.
- 3Ford expects to record pre-tax special item charges of approximately $650 million.
- 4Approximately $400 million of the charges will be paid in cash, mainly for employee separation and termination.
- 5Non-cash charges of about $250 million are related to pension expense and accelerated depreciation/amortization.
- 6Most of the charges are expected to be recognized in the 2019 fiscal year.
- 7Most of the cash outflows associated with the exit are anticipated in 2020.