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Ford Delays $12 Billion in EV Investments Due To UAW Strike Impact and Slow Consumer Demand (driveteslacanada.ca)
submitted 1 year ago by L4s to c/technology
29 comments fedilink hide all child comments
 

Ford Delays $12 Billion in EV Investments Due To UAW Strike Impact and Slow Consumer Demand::The 41-day United Auto Workers strike took a toll on Ford, leading to a $1.3 billion hit to its Q3 earnings, and forcing the automaker to reevaluate its electric vehicle (EV) strategy. One significant development [...]

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[–] Pretzilla -3 points 1 year ago* (last edited 1 year ago) (5 children)

Just to put a number on it, the UAW cost increase is around $1000 per vehicle.

Ed: apologizes for the delay in the source. Here's a gift article from the nytimes Please un-downvote now, thanks

But I still can't vouch for the veracity of the claim. Mr. Lawler is Ford CFO.

"Mr. Lawler said on a conference call that the contract would raise the company’s labor costs by an average of $850 to $900 per vehicle."

Ford’s U.A.W. Deal Will Raise Costs While Easing Labor Strife https://www.nytimes.com/2023/10/26/business/ford-uaw-contract.html?unlocked_article_code=1.6Ew.VpuI.7GTqA_SNwFxD

[–] eguidarelli 9 points 1 year ago* (last edited 1 year ago) (1 children)

Can you provide a source for that?

Edit: Appreciate it!

[–] Pretzilla 1 points 1 year ago

Updated

[–] surewhynotlem 4 points 1 year ago (1 children)

Yeah, that won't affect the cost. If Ford could increase the price of their vehicles by $1,000 and still sell them, they would be doing that right now. All this will do is eat into their profits.

[–] Pretzilla 1 points 1 year ago

Pretty much. Prices are set by supply and demand, but when you tack on a fixed cost across the board it does put upward pressure on the price.

[–] surewhynotlem 3 points 1 year ago (1 children)

That sounds wrong. Their factories and parts must be super cheap for labor to make up such as large portion of cost.

[–] guacupado 2 points 1 year ago

The UAW pres, I think, said labor was like 5% the cost of vehicles. They could double everyone's pay and still make ridiculous profits.

[–] QuarterSwede 3 points 1 year ago

I would have thought it was more honestly. I know what team’s labor is and it’s north of that figure for $10K customer price.

$1,000 labor is 2% on a $50,000 vehicle. 1.5% on $75,000. Obviously I’m not looking at dealership markup, etc for ease of math. This just gives you an idea of what percentage that is.

[–] Poach 2 points 1 year ago (1 children)

That's the cost to Ford, or how much they'd raise the price of their vehicles to compensate?