UAW strike cost Ford over $2.6b

The news: In its full-year 2023 operating results Ford said that the UAW strike which stopped the production of 100,000 vehicles cost it USD1.7 billion ($2.6 billion).

The numbers: Having withdrawn guidance during the United Auto Workers (UAW) strike, Ford now expects full-year adjusted earnings before interest and tax (EBIT) of USD10 billion to USD10.5 billion. The revision is down from previous guidance, for EBIT of between USD11 billion and USD12 billion.

The context: The UAW strike was resolved in October, and Ford says the agreement is likely to result in an additional cost of USD900 per vehicle by 2028.

On Wednesday General Motors’ stock bounced 8% on news of a USD10 billion share buyback. GM also expects to see full-year operating profit between USD11.7 billion and USD12.7 billion, a year-on-year decrease caused by a six-week UAW strike that wiped USD1.1 billion from its Q3 and Q4 profits.