Ford will build large pickups at a Canadian factory that it had previously slated to produce electric vehicles, sales of which have slowed in recent months.
The agreement, if ratified, will cover 1,600 workers making batteries for General Motors in Ohio. The union said it would be a model for efforts elsewhere.
Automakers and dealers are starting to offer discounts, low-interest loans and other incentives to lure buyers as the supply of cars grows.
Automakers in the United States and their supporters welcomed President Biden’s tariffs, saying they would protect domestic manufacturing and jobs from cheap Chinese vehicles.
The gasoline-powered Malibu was the last affordable sedan sold by Chevrolet, the General Motors brand, in the United States.
General Motors has struggled with electric vehicles and in foreign markets but it is selling lots of combustion engine cars and trucks in North America.
The automaker said it would delay new battery-powered models and shift its focus to hybrid cars, sales of which are rising fast.
Toyota, the world’s largest automaker, has been criticized for selling few electric vehicles, but its decision to focus on hybrids is paying off financially.
The money-losing electric vehicle company, which makes vans, trucks and S.U.V.s, is trying to preserve cash as it works to produce and sell more affordable vehicles.
Some buyers said the electric Lightning did not meet expectations, and Ford has slashed its production plans for the pickup because sales are lagging.