Ford Expects Health-Care Costs to Top $1 Billion in 2020
- Automakers likely to seek more cost-sharing in benefit plans
- Showdown over medical coverage is expected in UAW bargaining
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Ford Motor Co. expects the cost of health insurance for its 56,000 hourly workers in the U.S. to top $1 billion for the first time next year, according to a person familiar with the situation, highlighting a growing expense for automakers even as car sales slow.
Those mounting health-care costs represent a potential sticking point in this year’s contract talks between the United Auto Workers and the three U.S. automakers that tried and failed four years ago to address an expanding outlay that threatens profits and jobs. At Ford, General Motors Co. and Fiat Chrysler Automobiles NV, the tab for health insurance topped $2 billion in 2015 and has only grown since.