Major Automaker Says Union Deal Will Add Nearly a Thousand Dollars to Car Costs

Ford Motor Co. announced on Thursday that labor costs following a recent major union deal will cost the company around $900 per vehicle by 2028.

Ford, along with other major U.S. automakers General Motors and Stellantis, faced a six-week-long strike by the United Auto Workers (UAW) starting in September, with all three companies recently voting to approve new contracts through 2028. The company expects the new labor agreement to cost an extra $8.8 billion over the course of the contract due to wage increases of around 25%, accelerated wage progression and cost-of-living adjustments as stipulated in the contract, according to a press release from the company.

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