Ford Announces 2025 Profit Sharing Plan for U.S. Autoworkers
Ford Motor Co. announced on Tuesday that it will distribute profit-sharing bonuses of approximately $6,780 to its hourly autoworkers in the United States for the year 2025. This payout is subject to variation based on the total compensated hours for 56,300 eligible employees, as well as another 1,490 workers who retired last year. The planned bonus represents a 34% decrease from last year’s average payout of around $10,208.
Insight into Ford’s Profit-Sharing Plan for 2025
The profit-sharing checks are expected to reach workers by mid-March. Ford’s Chief Financial Officer, Sherry House, expressed gratitude to employees for their contributions in producing quality vehicles during 2025.
Financial Performance and Trends
Ford reported an adjusted operating income of $6.8 billion for 2025, reflecting a significant decline of one-third from the previous year. This financial figure, which informs the profit-sharing calculation, does not account for special charges from Ford’s strategic shift towards hybrids, gas-powered vehicles, and stationary energy storage products. During this year, Ford faced heightened costs due to tariffs, production disruptions, and ongoing supply chain issues.
Details of the Profit-Sharing Calculation
The profit-sharing initiative is rooted in the formula established through negotiations in 2023 with the United Auto Workers (UAW). Ford’s lack of detailed financial reporting for North America has shifted the payout calculations to emphasize the company’s global earnings, including contributions from Ford Credit.
- Eligibility for profit sharing has been expanded to include temporary employees.
- Employees at BlueOvalSK LLC, a joint venture with SK On Ltd., will not receive bonuses.
Approximately 1,600 employees at Ford’s battery park in Glendale, Kentucky, may face layoffs as the company transitions the site for stationary energy storage production.
Comparison with Competitors
Ford maintains the highest employment of hourly workers in the U.S. automotive sector and ranks first in domestic vehicle production for both consumption and export. Earlier this month, Ford also announced a regular quarterly dividend of 15 cents.
In comparison, General Motors Co. disclosed plans to pay over 47,000 eligible hourly workers $10,500 in profit-sharing, a reduction from last year’s record of $14,500. UAW-represented workers at GM’s joint venture, Ultium Cells LLC are qualified for these payouts.
Stellantis NV, the parent company of Chrysler and Jeep, is set to announce its 2025 financial results and profit-sharing plan for U.S. employees on February 26.
