Ford stock is trading sharply down after the automaker reported earnings that fell short of estimates.
While Ford was the first of the Detroit automakers to reach a tentative deal with the UAW, the new contract will raise Ford's already-high costs even higher if ratified.Ford Motor Company's electric F-150 Lightning on the production line at their Rouge Electric Vehicle Center in Dearborn, Michigan on September 8, 2022.traded sharply lower Friday after the company reported earnings that missed estimates and said that demand for its electric vehicles was falling short of expectations.
But Ford's new contract will be an expensive one. CFO John Lawler said the UAW deal, if ratified by members, will add $850 to $900 in costs to every vehicle assembled in the U.S. That will put additional pressure on CEO Jim Farley's ongoing efforts to improve Ford's costs and quality.
While executives emphasized that Ford isn't cutting back on or delaying its plans to develop a range of more advanced EVs, investors concerned about the company's ability to compete with