Ford May Save $1 Billion Under UAW Accord

Ford Motor Co., which is facing a deepening financial crisis, will probably save more than $1 billion a year in healthcare costs under an agreement with the United Auto Workers union, analysts said.

The UAW said late last week that it had agreed to higher payments for healthcare for hourly employees at Ford in a move to help stem the automaker’s growing losses in North America.

The tentative agreement is still subject to ratification by rank-and-file members of the UAW at Ford.

The agreement will generate annual cost savings of about $1.05 billion, or about 40 cents a share, Deutsche Bank analyst Rod Lache said in a note to clients this week.

Ford spokeswoman Marcey Evans declined to comment on the details of the new accord.