It would cost Ford, if they had all 150,000 UAW, only 4% of their profits from last year to give out the 6 billion dollars necessary to give a 40% raise if those workers made 100,000 per year
Ford's net income (aka profit/loss) in 2022 (FY23) was ~ -$2.1B Billion [1]. The raise would effectively add an additional $6B loss.
Think about it this way - how often do you see a brand new Big 3 car? At least in the Bay Area it's not often - it's mostly Tesla, Japanese (Toyota, Lexus, Honda, Acura, Nissan), Korean (Hyundai, Kia), and German (BMW, Mercedes, Volkswagen) automakers. And I've see a similar split both across the west and east coasts.
Eg. In 2022, the big 3 represented ~40-45% of new car sales in the US, with an average of 10% decreases in sales across the board [0]. And unlike Japanese, Korean, or German players, the Big 3 are shut out or divested out of the Asian market (eg. China, India, ASEAN) meaning no growth market in the horizon.
There isn't that much money left for the Big 3 to generate profits when enough people aren't buying their products.
According to your link the big three are 4 out of the top 5 brands being sold. Ford and GM being #2 and #3 respectively.
And by model[0], they make up 8 of the top 25, 5 of the top 10 with the F150 being the #1 selling vehicle.
Not everyone lives on the coasts. While the Japanese brands are very common here too (and I personally prefer them) my work parking lot probably has Ford trucks as the most used vehicle.
The auto industry needs to pivot to survive the next few decades for sure but some sliver of profits going to the workers is only reasonable. My hypothetical was Ford having to fund a high raise for all UAW workers when they would in reality not need to.
By market share yes. Yet even at 42% market share they are operating at a loss in 2022.
All carmakers in the US saw around a 10% drop in sales in FY23. The difference is Big 3 carmakers are very US-centric, while other Japanese/Korean/German carmakers have growth markets that they can further leverage or that can cushion bad sales in the US.
The Big 3 simply don't have a strong long term outlook nor enough money to give a raise, as they are not selling enough to break even.
By model isn't a relevant enough number simply because we need to see at the macro-level how a company is actually operating.
An additional issue with the UAW strike is EV/Battery related jobs do NOT fall under the UAW's Union [0].
At the end of the day, this is just low level politicking in a few swing states (Michigan, Pennsylvania) and one former Swing State (Ohio)
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Ford's net income (aka profit/loss) in 2022 (FY23) was ~ -$2.1B Billion [1]. The raise would effectively add an additional $6B loss.
Think about it this way - how often do you see a brand new Big 3 car? At least in the Bay Area it's not often - it's mostly Tesla, Japanese (Toyota, Lexus, Honda, Acura, Nissan), Korean (Hyundai, Kia), and German (BMW, Mercedes, Volkswagen) automakers. And I've see a similar split both across the west and east coasts.
Eg. In 2022, the big 3 represented ~40-45% of new car sales in the US, with an average of 10% decreases in sales across the board [0]. And unlike Japanese, Korean, or German players, the Big 3 are shut out or divested out of the Asian market (eg. China, India, ASEAN) meaning no growth market in the horizon.
There isn't that much money left for the Big 3 to generate profits when enough people aren't buying their products.
[0] - https://www.carpro.com/blog/full-year-2022-national-auto-sal...
[1] - https://www.macrotrends.net/stocks/charts/F/ford-motor/net-i...
According to your link the big three are 4 out of the top 5 brands being sold. Ford and GM being #2 and #3 respectively.
And by model[0], they make up 8 of the top 25, 5 of the top 10 with the F150 being the #1 selling vehicle.
Not everyone lives on the coasts. While the Japanese brands are very common here too (and I personally prefer them) my work parking lot probably has Ford trucks as the most used vehicle.
The auto industry needs to pivot to survive the next few decades for sure but some sliver of profits going to the workers is only reasonable. My hypothetical was Ford having to fund a high raise for all UAW workers when they would in reality not need to.
By market share yes. Yet even at 42% market share they are operating at a loss in 2022.
All carmakers in the US saw around a 10% drop in sales in FY23. The difference is Big 3 carmakers are very US-centric, while other Japanese/Korean/German carmakers have growth markets that they can further leverage or that can cushion bad sales in the US.
The Big 3 simply don't have a strong long term outlook nor enough money to give a raise, as they are not selling enough to break even.
By model isn't a relevant enough number simply because we need to see at the macro-level how a company is actually operating.
An additional issue with the UAW strike is EV/Battery related jobs do NOT fall under the UAW's Union [0].
At the end of the day, this is just low level politicking in a few swing states (Michigan, Pennsylvania) and one former Swing State (Ohio)
[0] - https://www.politico.com/news/2023/09/13/biden-labor-ally-th...