General Motors and Ford have laid out ambitious plans to spend billions developing new electric vehicles while returning capital to investors, all funded by robust profits from combustion trucks and SUVs.
The mounting costs of the United Auto Workers strikes, and the eventual rich contract settlements, are putting those plans at risk, analysts said.
The strikes have costing GM and Ford more than $500 million, JP Morgan analyst Ryan Brinkman estimated in a note Monday. Ford is now losing $44 million a day, while GM is losing $21 million a day, Brinkman estimated. Ford spent $3.8 billion on dividends through the first half of this year, according to its most recent financial report. The company told investors in May it planned to distribute 40% to 50% of free cash flow to investors each year via dividends and share buybacks.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
UAW strike update: 550+ Ford employees laid off due to Kentucky Truck, Chicago Assembly stoppagesMore than 550 Ford employees were told not to report to work Monday as a result of the UAW strike, the automaker said, citing stoppages at Kentucky Truck Plant and Chicago Assembly Plant.
Leer más »
UAW strike could upend GM, Ford financial strategiesThe mounting costs of strikes and eventual contract settlements are putting plans for EV development and shareholder profits at risk, say analysts.
Leer más »
Ford's Kentucky Truck Plant crown jewel for UAWThe United Auto Workers' strike at Ford Motor Co.'s plant in Louisville, Kentucky, will deal a major blow to the automaker. The facility is Ford's largest and most profitable.
Leer más »
UAW says had to escalate action on FordUAW says had to escalate action on Ford
Leer más »