Ford hourly US workers to get $9,000 profit-share bonus

Ford signImage copyright
Reuters

US car giant Ford has made its second-best annual pre-tax profit to date of $10.4bn (£8.26bn).

The figure means its 56,000 hourly US workers will receive an average $9,000 profit share, based on the profit made in North America.

Ford revealed that cancelling its planned new plant in Mexico cost it $200m, but it also saved $500m moving production to an existing plant there.

Ford makes the vast bulk of its profits in North America.

European plants contributed $1.2bn, a record.

For the fourth quarter, the company actually made its first loss in seven years, thanks to a pension charge and the Mexico cancellation.

Earlier this month, Ford said it would cancel a $1.6bn plant it planned to build in Mexico and instead would extend operations at its Flat Rock factory in Michigan.

Ford boss Mark Fields said at that time the decision was partly due to “dramatically” falling sales of small cars and partly a “vote of confidence” in Donald Trump’s policies.

The US president, while president-elect, had criticised both Ford and its rival General Motors over production of models in Mexico.

Ford’s financial officer, Bob Shanks, said it was “watching” the Trump administration for an idea of how its policies would affect the company’s plans.

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