Ford Says The New U.S. Labor Agreement With The UAW Is Expected To Cost $8.8B Over Life of the Contract; The Cost Effect Is Anticipated About $900 Per Vehicle By 2028 – Or About 60 Basis Points To 70 Basis Points Of Adjusted EBIT Margin
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Ford Motor Company expects the new U.S. labor agreement with the UAW to cost $8.8 billion over the contract's life. The cost effect is estimated to be about $900 per vehicle by 2028, which could reduce Ford's adjusted EBIT margin by 60 to 70 basis points.
November 30, 2023 | 11:56 am
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Ford's new labor agreement with the UAW is expected to cost the company $8.8 billion, with an estimated impact of $900 per vehicle and a potential reduction in adjusted EBIT margin by 60 to 70 basis points by 2028.
The anticipated cost of the new labor agreement is significant and directly affects Ford's financials. The per-vehicle cost increase and the projected margin compression are likely to be viewed negatively by investors, potentially leading to a short-term decrease in Ford's stock price.
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