Item 2.05. Costs Associated With Exit or Disposal Activities.

Ford Motor Company Brasil Ltda. ("Ford Brazil"), a subsidiary of Ford Motor Company (the "Company"), announced today that it is exiting manufacturing in Brazil. The plan was approved on December 22, 2020 and affected employees were notified today. As a result of these actions, Ford Brazil will cease production at Taubate, Camaçari, and Troller. In connection with this announcement, the Company currently expects to record pre-tax special item charges of about $4.1 billion, including about $2.5 billion in 2020 and about $1.6 billion in 2021. The charges will include about $1.6 billion of non-cash charges related to writing-off certain tax receivables and for accelerated depreciation and amortization. The remaining charges of about $2.5 billion will be paid in cash primarily in 2021 and are attributable to separation, termination, settlement, and other payments.

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