Pretty much a major blow to the UAW and a you need to read between the lines to intuit the rest, but it sure seems pretty clear that FORD is going to be building its new manufacturing facilities in Mexico where labor is cheaper and strikes are far less of a threat.
FORD has actually been the easiest of the companies for UAW to cooperate with over the past couple of decades, looks like that is ending. Full story at link
fortune.com
FORD has actually been the easiest of the companies for UAW to cooperate with over the past couple of decades, looks like that is ending. Full story at link
Ford CEO says he will 'think carefully' about where to build future factories after last year's auto workers' strike: 'Our relationship has changed'
“We have to think carefully about our (manufacturing) footprint," CEO Jim Farley told an auto conference.
Last fall’s contentious United Auto Workers’ strike changed Ford’s relationship with the union to the point where it will “think carefully” about where it builds future vehicles, Ford’s top executive said Thursday. . .
But last year, Ford’s highly profitable factory in Louisville, Kentucky, was the first truck plant that the UAW shut down with a strike.
Farley said as the company looks at the transition from internal combustion to electric vehicles, “we have to think carefully about our (manufacturing) footprint.”
Ford, Farley said, decided to build all of its highly profitable big pickup trucks in the U.S., and by far has the most union members — 57,000 — of any Detroit automaker. This came at a higher cost than competitors, who went through bankruptcy and built truck plants in Mexico, he said. But Ford thought it was the “right kind of cost,” Farley said.
“Our reliance on the UAW turned out to be we were the first truck plant to be shut down,” Farley told the conference. “Really our relationship has changed. It’s been a watershed moment for the company. Does this have business impact? Yes.”
The UAW made strong wage gains after a six-week strike at selected plants run by Ford, General Motors and Jeep maker Stellantis. Top-scale factory workers won 33% raises in a contract that runs through April of 2028, taking their top wage to around $42 per hour. . .
High manufacturing costs are among the reasons why Ford has a $7 billion annual cost disadvantage to competitors, Farley has said. He told the conference that Ford is making progress on cutting those costs with cultural and structural changes at the company. . . .
His comments about the union raise questions about whether the new small EV would be built in Mexico, which has lower labor costs. Vehicles built in North America are still eligible for the U.S. tax credit.
