Ford withdrew its full-year performance forecast and its new contract with UAW increased labor costs by $850,900 per vehicle

Thanks to CTOnews.com netizen Xiao Zhan for the clue delivery! CTOnews.com, Oct. 27 (Reuters)-Ford Motor recently withdrew its full-year performance forecast because the agreement with the United Auto Workers (UAW) has not yet been approved, there is "uncertainty" and warned that Ford will face continued pressure.

UAW reached an interim agreement with Ford to raise the wages of 57000 workers by 25% over the next four and a half years, ending strikes at some of Ford's largest factories.

John Lawler, Ford's chief financial officer, said the new contract was expected to increase labour costs per vehicle by $850,900 (CTOnews.com note: currently about 6588 yuan).

Ford is increasingly worried about cooling demand for electric vehicles after rival General Motors decided this week to delay the construction of a $4 billion electric truck plant in Michigan. Mr Lawler reiterated that Ford would delay some of its planned multibillion-dollar investment in new electric vehicles and battery capacity, citing "tremendous downward pressure" on prices.

Ford's 36000 electric vehicles delivered to dealers this quarter are expected to lose $36000 each (currently about 264000 yuan), even more than the estimated loss of $32350 per electric vehicle in the second quarter.

At Ford's second-quarter earnings announcement in July, Jim Farley, chief executive, said Ford would slow the growth of lossmaking electric vehicles, shift its investment to Ford's commercial vehicle division and plan to quadruple gas-electric hybrid sales over the next five years.

In addition, GM withdrew its 2023 performance forecast and cancelled its often reiterated forecast to produce 400000 electric vehicles by mid-2024.

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"Ford shook hands with the union, and employees' salaries will rise by more than 30% during the term of the contract."