Ford Profits Soar as UAW Strikes for Better Pay
The UAW has gone on strike because they want better pay since their employers are highly profitable. While not true by the numbers, it seems that way in absolute dollars. Ford made $1.9 billion in Q2 2022, versus $667 million the prior year. Total revenue also rose 12% to $45 billion.
Ford may dispute the union’s profit characterization. If so, Ford is missing the point.
Ford faces the same dilemma as GM and Stellantis. Its executives are well-paid, and the company is very profitable. Bill Ford and Jim Farley made $38 million combined last year. They argue much is in stock options, but they remain among America’s highest paid public CEOs.
Especially concerning for Ford, management made several big mistakes last year. Farley missed Q3 2022 expense expectations by $1 billion due to miscalculated costs. The stock plunged more than it had in 11 years the next day.
Ford also raised F-150 Lightning prices repeatedly, purportedly due to unexpected component costs. That should not happen at one of the world’s largest automakers. (Read about owning a Ford F-150: the good, the bad, and the ugly.)
Ford’s stock began 2022 around $25 and ended the year just above $12. Who wouldn’t want that kind of pay for similar performance?
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