Ford says autoworkers strike cut sales by 100,000 vehicles and cost company $1.7 billion in profits
Ford Motor Co. says a six-week strike by the United Auto Workers union cut sales by about 100,000 vehicles and cost the company $1.7 billion in lost profits this year
DETROIT (AP) — A six-week United Auto Workers strike at Ford cut sales by about 100,000 vehicles and cost the company $1.7 billion in lost profits this year, the automaker said Thursday.
Additional labor costs from the four-year and eight-month agreement will total $8.8 billion by the end of the contract, translating to about $900 per vehicle by 2028, Chief Financial Officer John Lawler said in a company release. Ford will work to offset that cost through higher productivity and reducing expenses, Lawler said.
The Dearborn, Michigan, automaker re-issued full-year earnings guidance that was withdrawn during the strike but trimmed its expectations. The company now expects to earn $10 billion to $10.5 billion before taxes in 2023. That's down from $11 billion to $12 billion that it projected last summer.
Ford said the strike caused it to lose production of high-profit trucks and SUVs. UAW workers shut down the company's largest and most profitable factory in Louisville, Kentucky, which makes big SUVs and heavy-duty pickup trucks.
