Ford’s CEO, Jim Farley, discussed the impact of the United Auto Workers’ strike on Ford’s manufacturing decisions and relationship with the union.
The strike led Ford to reconsider its manufacturing footprint and prioritize building big pickup trucks in the U.S. despite higher costs compared to competitors.
The UAW secured significant wage gains for workers through the strike.
Ford aims to offset its manufacturing costs through cost-cutting measures and plans to focus on smaller, lower-priced electric vehicles.
Ford CEO Jim Farley said, “We have to think carefully about our (manufacturing) footprint.”
“Our reliance on the UAW turned out to be we were the first truck plant to be shut down,” he continued.
“Really our relationship has changed. It’s been a watershed moment for the company. Does this have business impact? Yes,” explained the Ford CEO.
The company is developing a smaller, more affordable EV with potential production in North America to qualify for U.S. tax credits.
Farley also mentioned plans to leverage common battery cell technology to lower costs.
Ford’s electric vehicle unit, Model e, faced significant losses, but the company aims for new EVs to be profitable within a year of release.
Ford faces competition from Chinese automakers in the EV market and is focusing on lean operations to stay competitive.
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