Ford is entering negotiations with the United Auto Workers (UAW) union and while it produces more of its vehicles in the U.S. than rivals General Motors and Stellantis, it has been revealed that doing so comes at a cost.
Approximately 80% of all the vehicles that Ford builds are brought to life in the United States. However, company sources assert that this puts it at a $1 billion annual cost disadvantage to GM and Stellantis.
Auto News reports that Ford has a $9-an-hour labor cost gap compared to foreign car manufacturers with nonunion workers. It spends an average of $112,000 annually on wages and benefits for each hourly worker and that figure is expected to rise after negotiations with the UAW. In fact, UAW president Shawn Fain has said that he will push for significant raises and additional benefits for its members in response to the record profits enjoyed by Ford, GM, and Stellantis over recent years.
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