My Investing Muse

UAW threatens to strike, affecting the Detroit 3 of GM, Ford & Stellantis. ABC News has reported the following: The union has asked for 46% raises in general pay over four years — an increase that would elevate a top-scale assembly plant worker from $32 an hour now to about $47. In addition, the UAW has demanded an end to varying tiers of wages for factory jobs; a 32-hour week with 40 hours of pay; the restoration of traditional defined-benefit pensions for new hires who now receive only 401(k)-style retirement plans; and a return of cost-of-living pay raises, among other benefits. Over the past decade, the Detroit Three have emerged as robust profit-makers. They’ve collectively posted net income of $164 billion, $20 billion of it this year. The CEOs of all three major automakers earn multiple millions in annual compensation. From the above, the demand for a 46% pay increase looks steep in contrast to the accumulated inflation rate of 18% since Jan 2020 as per BLS .  On top of...

From Twitter user ~ Sawyer Merritt NEWS: Ford has reported Q1 earnings, and for the first time have broken out EV earnings. • EPS : $0.63 adj. vs $0.41 expected • Auto revenue: $39.09B vs $36.08B expected Ford's EV unit lost $700 million in Q1, with EBIT margin being -102.1%. Total combined free cash flow was $700 million. From CNBC  News extract: The company reiterated it expects full-year adjusted earnings between $9 billion and $11 billion and roughly $6 billion in adjusted free cash flow. Ford said it plans to have capital expenditures of between $8 billion and $9 billion in 2023.   Ford also reconfirmed it expects to lose about $3 billion from its electric vehicle operations, known as Model e, in 2023. Ford said the operations’ loss widened to $722 million in the first quarter from $380 million a year earlier as it ramps up EV production. Those losses were washed out, however, by the company’s traditional car business, known as Ford Blue, which earned $2.6 billion, and th...