Detroit, Michigan – Last year’s United Auto Workers’ strike at Ford Motor Co. has caused a significant shift in the company’s relationship with the union, according to CEO Jim Farley. Speaking at the Wolfe Research Global Auto Conference in New York, Farley highlighted the impact of the strike on Ford’s future manufacturing decisions.
The company is now reconsidering its manufacturing footprint as it transitions from internal combustion to electric vehicles. Farley emphasized that the strike at Ford’s highly profitable factory in Louisville, Kentucky, marked a pivotal moment in the company’s relationship with the UAW. This has prompted Ford to carefully evaluate where it will build its future vehicles.
He underscored the importance of the UAW in Ford’s operations, noting that the company decided to build all of its highly profitable big pickup trucks in the U.S. despite the higher cost compared to competitors. However, the strike last year brought about a significant change in Ford’s relationship with the UAW, prompting the company to reassess its manufacturing decisions.
In response to Farley’s comments, union President Shawn Fain emphasized the importance of prioritizing the American workforce and the future of the country’s auto industry. The remarks made by both Farley and Fain underscore the changing dynamics of the relationship between the company and the union.
Amid discussions about manufacturing costs and the impact of the UAW contract, Farley also shed light on Ford’s shift in electric vehicle strategy. The company is focusing on smaller, lower-priced EVs and electric work vehicles, with plans for the next generation of electric vehicles to be released between 2025 and 2027. Additionally, Farley mentioned the potential for a smaller, more affordable electric vehicle in the future, leveraging U.S. federal tax credits.
Further discussions at the conference delved into the impact of the UAW strike on Ford’s manufacturing costs, its focus on EV competitiveness, and the potential for the company to build out manufacturing in Mexico and other low-cost locations. The evolving landscape of the auto industry and the critical role of labor unions in shaping the future of manufacturing were central themes of the conference.
As the auto industry undergoes extensive changes, particularly in the transition to electric vehicles and the shift in manufacturing strategies, the discussions at the conference shed light on the complexities and challenges facing automakers like Ford. The evolving dynamics between companies and labor unions, coupled with the global competition in the EV market, present critical considerations for the future of the auto industry.