Ford Motor Co. executives said Nov. 30 that the recently concluded United Auto Workers contract negotiations are expected to add about $900 in costs per vehicle by 2028—a starkly higher figure than the $575 per car over the life of the contract offered by General Motors Corp. earlier this week.
Speaking on Bloomberg Radio, CFO John Lawler said the new, four-and-a-half-year UAW contracts will add about $500 to each car Ford produces in 2024 before steadily climbing as workers’ wages do. He added that he’s not yet sure why GM’s total impact number is markedly lower.
In a statement and separately while speaking at a conference hosted by Barclays, Lawler said Ford lost $1.7 billion in profits from the six-week UAW strike, during which the union targeted factories making high-margin trucks and sport-utility vehicles. Workers’ new contracts will cost Ford $8.8 billion over their lives, which is slightly less than GM’s $9.3 billion forecast.