Ford Shares Dive to 52-Week Low Despite Tentative Union Agreement Achieved
Shares of automaker Ford (NYSE:F) hit a 52-week low this morning despite news that the company has struck a tentative deal with the United Autoworkers on a new contract. The deal calls for Ford committing to hiring 12,000 new employees and investing $6.2 billion in its factories over the next four years. The New York Times elaborates on these promises:
“We really believe that it’s fair to our employees and recognizes the contribution that they’ve made to the success of Ford Motor Company,” John Fleming, Ford’s executive vice president of global manufacturing and labor affairs, told reporters at Ford’s headquarters.
Mr. Fleming declined to elaborate on how the deal affects Ford’s labor costs. He said nearly all of the new jobs will pay entry-level wages, which are currently about half as much as veteran workers earn. He said the entry-level pay scale would increase to be roughly on par with General Motors, which gave entry-level workers an hourly raise of $2 to $3 in a deal ratified last week, but he declined to give specific figures.
Following is some information on Ford’s stock price performance and that of its competitors:
- Ford (NYSE:F): The shares recently traded at $9.19, down $0.18, or 1.92%, on the day. The shares have traded in a 52-week range of $9.05 to $18.97 and its market capitalization is $34.92 billion. About the company: Ford Motor Company designs, manufactures, and services cars and trucks. The Company also provides vehicle-related financing, leasing, and insurance through its subsidiary.
- General Motors (NYSE:GM): The shares recently traded at $19.36, down $0.35, or 1.77%, on the day. The shares have traded in a 52-week range of $19.05 to $39.48 and its market capitalization is $30.24 billion. About the company: General Motors Co. manufactures and markets new cars and trucks. The Company offers fetures for special needs drivers, OnStar vehicle protection, service, parts, accessories, maintenance, XM satellite radio, features for commercial owners, and more. General Motors offers its vehicles and services worldwide.
- Tesla Motors (NASDAQ:TSLA): The shares recently traded at $23.41, down $0.34, or 1.43%, on the day. The shares have traded in a 52-week range of $20 to $36.42 and its market capitalization is $2.44 billion. About the company: Tesla Motors, Inc. designs, manufactures, and sells high-performance electric vehicles and electric vehicle powertrain components to other automobile manufacturers.
- Honda Motor Co., Ltd. (NYSE:HMC): The shares recently traded at $28.16, down $0.58, or 2.02%, on the day. The shares have traded in a 52-week range of $28.04 to $44.56 and its market capitalization is $50.75 billion. About the company: Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, and power products such as generators and farm machinery. The Company also operates a financial credit business. Honda Motor has manufacturing facilities in the US, Canada, the UK, France, Italy, Spain, Brazil, Mexico, India, and Thailand.
- Toyota Motor Corp. (NYSE:TM): The shares recently traded at $$65.58, down $1.39, or 2.08%, on the day. The shares have traded in a 52-week range of $65.30 to $93.90 and its market capitalization is $102.87 billion. About the company: Toyota Motor Corporation manufactures, sells, leases, and repairs passenger cars, trucks, buses, and their related parts worldwide. The Company also operates financing services through their subsidiaries. Toyota Motor builds homes, produces pleasure boats, and develops intelligent transportation systems including radar cruise control and electronic toll collection systems.
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