Ford Could Add This Many Jobs to the Economy
Ford (NYSE:F) has worked out a four-year agreement with the UAW which is expected to include new, entry-level jobs that could be in-sourced from Mexico (NYSE:EWW), China (NYSE:FXI) and Japan (NYSE:EWJ). Also on the cards is a deal to swap annual pay increments with profit sharing payouts.
There could be 5750 new jobs added by 2015 and substantial investments of about $4.8B in plants (overall U.S. about $16B). The deal could also let Ford (NYSE:F) achieve savings on labor costs considering the new jobs are mostly entry-level.
Though UAW needs to ratify the contract, it is expected to announce further details at a press conference later today. The UAW already struck a deal with GM (NYSE:GM) last week.
Ford (NYSE:F) is trading at $10.08 today, up 7.58%. Shares are down 39.96% in one year. The stock’s trading range for the year is between $9.05 and $18.97.