UAW Deal Raises Ford’s Breakeven Point
To end strikes in its biggest factories, Ford entered into a tentative agreement with the United Auto Workers Union to increase the wages of its 57,000 workers by 25% in the next four and a half years.
The increase in wages will add $850 to $900 labor cost per vehicle. Ford faces a challenging task in balancing vehicle price, margin, and demand while remaining competitive relative to non-unionized automakers such as Tesla.
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