The legacy costs are huge. Plus this was about the union agreeing not to strike during contract renewall. NOT about their costs. Right now Ford is still very fragile and a strike could bury them. But the UAW apparently sees it differently.

Ford is doing a great job. I have happily owned many Ford's and will buy many more.

If I was Ford I would tell the union to get lost when the contract is up and move south. I would bet the CEO earns his money. I can't say the same for the union labor when high school drop outs make $50+/hr.

Legacy costs are GONE read up on the veba agreement ,takes effect jan 1 next year.

never did make 50 a hour unless you worked a sunday.
you ever work a 7 day operation? not fun

Great news and I hope GM & Chrysler follow. Healthy domestic auto manufacturing is good for the economy.

hone eagle and bamaro -- you're using logic and fact in your posts ! that's unacceptable ! i wonder when the guy will write in about the line workers making $150,000./ year. a few of us still laugh about that. bamaro's above post is right on the money.

It would really help if they could post links to support their 8% and veba claims...

http://www.autonews.com/article/20091102/ANA02/911029976/1181/FRONTPAGE

I read up on it.

"On Jan. 1, Ford must make a $1.9 billion payment into a UAW-administered voluntary employees' beneficiary association, with at least $1.3 billion of the amount in cash and the rest in Ford stock. In contrast, GM negotiated a much bigger reduction in the amount it must pay in cash Jan. 1 -- to $585 million.

All told, Ford must pay $6.5 billion of a $13.2 billion obligation to the VEBA in cash, while GM's cash payment is just $2.5 billion for an obligation that was $20 billion before new concessions were negotiated just before the automaker's bankruptcy filing June 1."





So, the $997 million in profit Ford made in the last quarter will be swallowed up entirely by the VEBA payment Ford has to make on Jan 1st. After Jan 1st, $5.5 Billion still remains to be paid.

I wouldn't call legacy costs "gone" quite yet. Ford is going to need a total of 7 profitable quarters just like the last one to pay off VEBA.



ETA - Sorry, the link won't work unless you go to it from google. Google "veba ford gm", click "news", and it's the first story.

I'm thinking its going to be hard to get the guys that work in the factory to give up much when the company is making money.

direct labour

Veba as a line item has been on the books for a while ,it is 'spent' money

Now lets see if the management can keep their head out of their arses and not ruin a good thing... If they do I would consider a vehicle from them in future.

Definitely not from the other 2. EVER!

You know lets see Ford Management take a cut and make huge sacrifices that they want the UAW to. It's all about lead by example...If Mulally and the other top management make huge sacrifices than I would bet that the rank and file would as well..I think Mulally is doing a good job, but honestly any ordinary joe with common sense could have come to the same conclusion that Mulally had, even a guy like me. I was constantly making the same observations about the need for the big three to change years ago and that a "perfect storm" of a credit crisis and oil prices would sink them if they didn't prepare for the future.

Mulally isn't exceptional, he is just finally one brass tack that made the required changes to deal with the changing auto market in the USA.

I'm am not a ford guy but will admit there cars have gotten better and the quality has too. I would not hesitate to look at a ford now. I like the Chevy Malibu and the Ford Fusion, both great cars that are good used car bargains, isn't the reliability of the Fusion on par (or better) than the camry and accord?

i like to think i have done my part lol.