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• Majority of unionised workers have voted in favour of Ford's deal with UAW.
• UAW deal could add up to $900 of additional costs per vehicle assembled.
• Ford stock is currently down more than 30% versus its year-to-date high.

Ford Motor Co (F) is trending up at writing after its represented staff ratified a record tentative agreement it inked with the United Auto Workers last month.

Votes in favour of Ford deal have a huge lead

Nearly 35,000 unionised workers at Ford participated in voting on Friday – of which 68.2% supported its deal with the UAW.

A few smaller facilities of the legacy automaker are yet to finalise voting results but those do not have enough employees to offset “for” votes that currently lead the “against” votes by more than 12,600.

The news arrives less than a month after Ford Motor reported disappointing results for its third financial quarter and withdrew its future guidance on uncertainty related to the UAW strike.

“F” is currently down over 30% versus its year-to-date high.

What does the UAW deal mean for Ford Motor?

In October, Ford promised a 25% increase (at least) in wages to the United Auto Workers on top of other economic benefits including the return of cost-of-living adjustments.

Its Dearborn facility in Michigan was particularly central in ratifying the said deal with about 2,700 employees voting in its favour.

Neither Ford Motor nor the UAW has officially commented on today’s update so far. Note that the represented workers at General Motors and Stellantis have approved their respective preliminary agreements with the union as well.

John Lawler – Chief Financial Officer of Ford expects the UAW pact to result in up to $900 of additional costs per vehicle assembled. Wall Street currently has a consensus “overweight” rating on “F”.

Is Tesla still magic or just a car company? Or has Ford become magic? Compare their stock price wiggles here over the last several years (ie, high correlation) and you decide for yourself. pic.twitter.com/USoqASvInU

— Ken Fisher (@KennethLFisher) November 13, 2023

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