Automakers detail billions of dollars in losses due to UAW strike

Ford Motor Company released a revised year-end financial forecast Thursday, showing that a six-week strike by union workers will cost the company $1.7 billion in lost profits this year. Its new agreement with the United Autoworkers Union adds $8.8 billion in labor costs over the life of the contract, which expires in April 2028, Ford said. General Motors also released updated numbers on Wednesday, citing a $1.1 billion loss of earnings due to the United Auto Workers’ six-week strike. GM also expects the new worker contract to cost the company an additional $9.3 billion.

Does this mean car prices will go up? Ford estimated the new contracts would tack an extra $900 in labor costs to each vehicle produced by 2028. However, Ford leaders said they would find cuts to other departments to make ends meet. GM also cut funding to its self-driving car sector to address safety issues. 

Dig deeper: Listen to Nick Eicher and David Bahnsen discuss the strike’s origins on The World and Everything in It podcast.