Ford Posts Record Profit, Gives Record Bonuses

We feel that it’s safe to say that American automakers are back in a big way, though arguably the biggest winner these days is the Ford Motor Company. Ford has designed and built an award-winning line of vehicles, and consumers are responding in a way they haven’t in years. Detroit is back baby, and Ford is leading the way.

So what better way to celebrate than with a record-breaking pre-tax profit of $8.6 billion for 2013? That is one of the best years Ford has ever had, and it equals a net income of more than $7 billion. That big profit translates into big bonuses for hourly workers, to the tune of some $8,800 each.

$8,800 is the average payment some 47,000 eligible hourly workers will take home, though individual payments will be higher or lower based on hours worked. This profit-sharing system was part of a 2011 deal between the UAW and the three Detroit Automakers in lieu of substantial, annual wages. The system directly links compensation with performance, and it’s a good time to be an hourly Ford employee.

The bonus is $500 more Ford’s last profit-sharing check, and it’s expected to be more than both GM and Chrysler’s average checks as well. The Blue Oval has been on a roll lately, and unlike many companies making record-breaking profits, it seems as though Ford employees are benefitting from their employer’s winning streak. For those wondering, this bonus pay is costing Ford about $413 million, give or take a couple of million, or about 5% of Ford’s pre-tax profit. Here’s hoping this era of excellence continues for a long time.