Ford recently struck a deal with the United Auto Workers to allow further concessions to the union’s 2007 labor contract, and it appears the new accord will be quite cost effective for the Blue Oval. Early indications suggest the new deal will save Ford about $500 million per year.
According to Automotive News, the new agreement with the UAW will save Ford about $375 million in 2009, with the full $500 million being realized from 2010 on.
Roughly half of that savings will come from the suspension of bonuses and other employee payments, with break time reductions kicking in another $50 million in savings. The infamous UAW job bank has also been eliminated.
Ford will also shutter at least one more production facility, with further buyout plans to be offered in April.
Ford expects the changes to bring its labor costs in line with foreign automakers by 2011.



03/11, 3:06 PM
posted by:
ninetysixvert
Awesome, keep that up Ford! Always knew they were the most solid of the Big Three.
03/11, 3:27 PM
posted by:
RaineMan
More good news from the Blue Oval camp. Maybe it’s time to buy some Ford stock.
Ya know… the more I see that new Mustang the more I like it.
03/11, 3:31 PM
posted by:
MasterYoda2005
^—-i am going to have to agree. Although I am more of a fan of the General I do have to say that Ford seems to be a bit more serious about becoming on par with the Toyonda. I will say that Alan Mullaly has proven to be able to turn things around for big companies in times of dire straits and hopefully he can continue to do the same at ford. When I am in the market for a new vehicle in the next 4-6 years I want to be able to buy American again.
03/11, 3:46 PM
posted by:
veeride
next 4-6 years………..hahahaha the world will be MUCH different than it is now……….
03/11, 4:15 PM
posted by:
Borat
Ford pisses away over billion a months. What the difference 375 mils make? If they to ask for assistance, we are talking 10-120 billions per year. They already went for 6 billions line of credit. 375-500 mils, will not cover Ford family bonus or procreation fund.
03/11, 4:21 PM
posted by:
yarddog82abn
Once again if Ford can make progress… Why is “GM” going in to chapter 11???????…………
03/11, 5:35 PM
posted by:
datboy
Ford is making some smart moves. Maybe gm and dodge chrysler can learn a few from them. would like to see all three survive but the only one really looking serious is ford.
03/11, 5:41 PM
posted by:
MasterYoda2005
veeride you are so correct the world is going to be a different place in six years. The roads will of course be full of hybrids and electric vehicles. Less and less will we see full size SUVs. I just hope that either Ford or GM (i could honestly care less bout Chrysler) make it out of this intact. But if GM has to go then let them go because they should have thought about having a ‘diverse portfolio’ rather than taking the easy way out (high margin gas guzzling trucks and suvs).
03/11, 6:07 PM
posted by:
tyler_is_aero_tt
Is Ford the only one out of the big three that is trying anymore? Ford deserves to outlive GM and Chrysler.
03/11, 7:25 PM
posted by:
johnnycanuck
You guys thinking the world is going to be so different in 4-6 years make me laugh. It’s like an original Star Trek episode where they reference Earth’s future from a 1960’s perspective only watching it now you realize just how far off their ‘predictions’ were. The world may look somewhat different in 30 or 40 years, that much is a given, but 4 to 6? Look back at models from 2003-2005. Are the 2009’s so radically different that you look at the older ones and say ‘how did we ever drive those’? Hardly. Give your heads a shake kids. You don’t gain 30 or 40 years experience without living 30 or 40 years. Accept that and you’ll live longer- trust me.
03/12, 12:35 AM
posted by:
fordman
Proof that ugly doesn’t sell : Ford Flex
03/12, 1:06 AM
posted by:
ninetysixvert
@ Borat –
Seeing as how Ford is making big moves to turn themselves around and rise to the challenge of these difficult times, I would say Ford didn’t “piss” anything away. It takes money to make money. They had a lot of changes to make and that doesn’t come cheap. So on top of the money they have been pouring into re-working their company, they will be saving every little bit they can. Yes, 500 million annually does help….if it didn’t I’m sure Ford would not have wasted the time negotiating that deal.
03/12, 1:14 AM
posted by:
ninetysixvert
@fordman –
Any proof to your comment? Every auto maker is hurting right now, with every vehicle’s production numbers slumping…. The Flex has received positive ratings from reviewers (C&D and Edmund’s, to name 2).
03/12, 8:30 AM
posted by:
Need more oil for GM
500m? What is that going to delay Fords bankruptcy by a week? 2 weeks?
Get ready, it’s coming. GM is going to be on the up and up pretty soon, wait for it. Ford is going to be the one surrounded by bankruptcy talks by the media.
GM. An American Revolution.
03/12, 8:42 AM
posted by:
RaineMan
Cars in 4-6 years won’t really be any different than the ones we are driving now. Sure, there will be more hybrid models available and less SUVs but we’re not going to see anything revolutionary. No big switch to all electric or hydrogen b/c the infrastructure to distribute it just isn’t there… and it would take a serious investment of capital to even think about getting it started. We see how GM is delaying the introduction of new models and putting off redesigns, expect other manufacturers to do the same as demand for new vehicles continues to drop. Look at vehicles produced back in the 80’s… the only changes that I’ve seen are in size and safety, both going up. Fuel economy and horsepower have pretty much stayed the same for the main-line models b/c all the advances in engine technology have been negated by the increasing weight of the vehicles and more stringent EPA emissions guidelines. It is impossible to make a car bigger, faster, safer, more fuel efficient, and less polluting at the same time. But that is what all the manufacturers are trying to do.
Most (intelligent) companies are paring down to the bare minimum needed to operate. The next two years are going to be about weathering the end of this economic shytestorm not expanding to new horizons.
03/12, 9:21 AM
posted by:
ninetysixvert
Yes, Need more oil for GM, I’m sure. Probably have a lot to base that statement on as well. Face it already, GM is NOT an American revolution. Ford has only dumped money into repairing the leaks in their boat so they can stay afloat. Meanwhile, GM is the Titanic of the Big Three and hit an iceberg….sinking….bye-bye!
03/12, 10:18 AM
posted by:
Fireresq157
With all due respect to Ford they hit rock bottom 1 to 2 years before this crisis and was able to secure a 30 BILLION dollar loan before the credit market DRYED UP. For a company that is about half of the size of GM, that would be like a 60 Billion Dollar loan for GM. They had been working on restructuring way before GM and Chrysler have had too. It just happened to be being at the right place at the right time. If they can’t turn this thing around with 30 billion then someone needs to be shot at Ford. So please stop assuming Ford had been doing the right thing all along they have been forced to do so because of circumstances it just happened to be with private money because they got lucky/unlucky. This just proves that with enough time and money all 3 US automakers can make it. BTW has Ford announced any profits yet or are they still living off their credit line? If they show profits how much of that is going towards paying their Loan? Did everyone forget Ford shopping themselves around to GM and Chrysler Nissan? Common people what’s with the short term memory. So stop all the Fan boy assumptions and be a realist and be fair we want all three companies around.
03/14, 2:17 AM
posted by:
bswalks
$500 million is like a fart in the wind compared to all the cash these companies are burning. They need meaningful concessions from the UAW in the form of health care changes both for current and retired employees or they don’t have a chance to complete.