JOURNAL ARTICLE

Ford Lowers Profit Guidance as Labor Costs Rise by $8.8 Billion.

  • Published In: Bloomberg.com, 2023. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Naughton, Keith 3 of 3

Abstract

Ford Motor Co. has revised its profit guidance due to increased labor costs resulting from its new contract with the United Auto Workers union. The company now expects adjusted earnings before interest and taxes for 2023 to be between $10 billion and $10.5 billion, lower than the previous projection of $11 billion to $12 billion. Ford estimates that labor costs will rise by $8.8 billion over the duration of the contract, which covers 57,000 US hourly workers. The company plans to offset these costs through cost cuts and productivity improvements. The UAW contract includes a 25% wage increase and the restoration of a cost-of-living allowance, making it the richest contract negotiated in decades. [Extracted from the article]

Additional Information

  • Source:Bloomberg.com. 2023/11, pN.PAG
  • Document Type:Article
  • Subject Area:History
  • Publication Date:2023
  • Accession Number:173922157
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