Patrick De Haan, head of petroleum analysis at GasBuddy, says the national gas price average is falling and could reach the lowest Thanksgiving prices since 2020 on Varney & Co.
The United Auto Workers union’s weeks-long strike against Ford Motor Company cost the automaker $1.7 billion, and additional costs from the new contract to end the stoppages will cost more than five times that amount, according to the automaker.
Ford, which withdrew its full-year 2023 outlook in October as the UAW strike shut down some major manufacturing plants, provided a new, trimmed forecast on Thursday.
Ford issued its reinstated guidance on Thursday. (Portal/Francois Lenoir / Portal Photos)
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 10.26 | -0.33 | -3.12% |
The automaker now expects adjusted earnings before interest and taxes (EBIT) of $10 billion to $10.5 billion in 2023, compared to its previous forecast of $11 billion to $12 billion in July.
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The company said $1.6 billion of the total strike-related profit loss occurred in the fourth quarter and the closures resulted in about 100,000 fewer wholesale vehicle sales than originally planned.
Ford said Thursday that production disruptions caused by the UAW strike resulted in it selling 100,000 fewer vehicles this year than originally planned. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
The new labor contract, which includes a 30 percent wage increase for union auto workers over the four-and-a-half-year term of the contract, will cost Ford $8.8 billion over the life of the contract.
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CFO John Lawler confirmed an earlier estimate that additional labor costs will increase per-vehicle costs by about $900 by 2028 and said the company will work to offset those costs through productivity improvements and cost reductions elsewhere.
Members of the United Auto Workers attend a solidarity rally as the UAW strikes against the three major automakers in Detroit on September 15. (Bill Pugliano/Getty Images / Getty Images)
Ford’s outlook comes a day after General Motors said its new collective bargaining agreements with the UAW and Canadian union Unifor will cost the company $9.3 billion by 2028. GM also announced $10 billion in stock buybacks and a 33% dividend increase to boost its sagging stock price.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 31.59 | +0.08 | +0.25% |
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Ford was the first of Detroit’s three major automakers to reach a tentative agreement with the UAW after nearly six weeks of targeted strikes that saw thousands of workers strike and picket lines across the country demanding better wages and benefits.
Portal contributed to this report.