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Cars and Drivers

Ford (F) Agreement With UAW Pressures GM (F)

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By Douglas A. McIntyre Updated Published
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fordFord (F) has come to an agreement with the UAW which will cut the car company’s costs enough so that it can afford to pass on taking any money from the federal government to operate until it can break even.

According to Reuters, “The modifications will protect jobs for UAW members by ensuring the long-term viability of the company,” UAW President Ron Gettelfinger said in a statement.” Clearly, the union caved in on benefits to save jobs.

The pressure to come to an agreement with the big union now moves to GM (GM). Its only hope for staying out of Chapter 11 is to be able to demonstrate that it has a program that cuts enough costs to get by on a relatively modest amount of money from the federal government, a sum in the range of its projections from December. If the price tag for keeping the largest car company in the country independent is going to run up to $40 billion or more, the Administration is better off with GM in Chapter 11.

Douglas A. McIntrye

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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