"Ford further confirmed on Thursday that the UAW deal is expected to add about $900 in costs per assembled vehicle by 2028."
https://www.cnbc.com/2023/11/30/fords-2023-guidance-uaw-deal-cost.html
More cost reductions and trimming to follow. I like Mexican food, so I'm good.
Maybe slightly off topic, but rumor has it that the non union employees at one of Ford's subsidiaries are going to get sh---y raises this coming year in order to pay for the union's hefty raise that they got.
LOL, only $900 increase per vehicle. I bet that estimate is off, given how marketing / accounting estimate costs and declining sales volumes.
So I can pay $900 extra and get nothing for it? Where do I sign up?
Should be added as a line item to the sticker!
Built by UAW $900.00
Built by non-UAW $0.00
Customer can choose which vehicle to buy.
I'm buying Honda or Toyota from this day forward.
Absolutely no more Ford turds, GM garbage and definitely not Mopar sh-t.
Japanese build quality is #1.
2003 civic still driving 2023.
I'm going to work at Honda and be happier
If you want a brand new vehicle look at a base model RAV 4 or god forbid a Nissan Frontier or a Rouge. With incentives, you could get one he-l of a deal.
If not then buy used. There is seldom a reason to justify a new vehicle purchase with so many used options out there. Unless the used vehicle you want is within 5-10k of the new version of it. Otherwise let everyone else go into temporary debt over their head / rich people splurge and gather the reliable crumbs.
As a retiree, I am looking for a new Edge but I just cant bring myself to write a check for $52,000. 52k for an SUV that isnt even loaded to the max? The fully loaded ones are on the lot for 58k. This has turned into absurdity.
I’m trying to justify a new Maverick purchase, but just cannot. Our two 14 year old Honda’s run like new, never break, and never need anything other than gas and tires.
"That’s okay, I’ll just buy the Toyota or Honda vehicle."
Down vote this all you want. This is actually what is happening. The market is self correcting and the ones actually selling value are getting the sales. There isn't anything difficult about understanding this. Can you be mad? Of course. Can you argue with it without being wrong? No.
Toyota is still selling sedans people want and they are selling a lot of them. While also selling the SUV's the US OEMs are trying to make everyone buy if they still want ICE.
Typically, the #1 reason customers buy Ford is because of pricing/promotion. So when part of the cost is increased but pricing cannot, other costs must come down or this cost increase needs to be eliminated.
Yeah. This is ominous for salaried workers. Notice they say the $900 won't be passed entirely on to the consumer. They know the price of vehicles is at the limit, and in fact, a vehicle price correction is in the future in order to remain competitive.
So what this means is what else is mentioned: efficiencies. Read: More getting rid of salaried employees in the US and replacing them in LCCs.
That is the Ford+ plan. Acceleration of that transition. Further, they are selling snake oil to investors with this "monetization of services". They've been singing that tune for almost 10 years starting with parking in the original version of Fordpass. No one is buying that anymore. If you don't get a dollar out of the consumer at the sale of the vehicle, your ain't getting it.
That’s okay, I’ll just buy the Toyota or Honda vehicle.