Agreement with the union forces the manufacturer to raise prices
Increasing wages and benefits for Ford employees will lead to higher vehicle prices. Ford said the cars will cost $900 more because of the contract once it takes effect. Like the rest of the industry, the automaker is preparing for the transition to electric vehicles. The company has had to rethink its strategy to focus on smaller, more affordable electric vehicles in the face of increasing competition from China.
Ford CEO Jim Farley said his relationship with the United Auto Workers (UAW) union has changed. According to the Associated Press, Farley said the closure of Ford's first truck plant will indeed have an impact on business.
Last September, the union went on strike against Ford, General Motors and Stellantis. The strike has hit automakers' pocketbooks. For Ford, it was a profitable truck plant in Kentucky that now has the automaker «thinking carefully about where it will make its future vehicles».
The strike at the Ford Louisville plant began on October 11, almost a month after the UAW strike began, bringing an additional 8,700 workers to the picket line. During the negotiations, the union will also target production of the Ram 1500 and Chevrolet Suburban and Yukon.
UAW suspended the strike at the end of October, reaching agreements with Ford, Stellantis and General Motors. UAW members voted to ratify three contracts by Thanksgiving, achieving higher pay, increased benefits, an end to the two-tier employment system and more.