The automaker in July warned of economic headwinds, including inflation, higher industrywide incentives, electric vehicle pricing pressure, increased warranty expenses and the potential for UAW contract negotiations to raise labor costs.
Ford, General Motors and Stellantis are two weeks from a contract deadline with the UAW and could face a strike if the sides can’t reach an agreement. The Anderson Economic Group projected that a 10-day strike against the Detroit 3 would result in more than $5 billion in economic losses.
The automaker continues to invest heavily in EVs and new technologies, with plans to spend more than $50 billion on EVs through 2026. Ford’s EVs are currently unprofitable, though the company expects to generate 8 percent margins in 2026.
Despite the challenges, Ford in July raised its full-year guidance and now expects adjusted earnings before interest and taxes of $11 billion to $12 billion.