Final fall’s contentious United Auto Employees’ strike modified Ford’s relationship with the union to the purpose the place it’s going to “consider carefully” about the place it builds future automobiles, Ford’s prime govt mentioned Thursday.
CEO Jim Farley informed the Wolfe Analysis World Auto Convention in New York that the corporate at all times took satisfaction in its relationship with the UAW, having prevented strikes for the reason that Seventies.
However final yr, Ford’s extremely worthwhile manufacturing facility in Louisville, Kentucky, was the primary truck plant that the UAW shut down with a strike.
Farley mentioned as the corporate appears on the transition from inside combustion to electrical automobiles, “we have now to think twice about our (manufacturing) footprint.”
Ford, Farley mentioned, determined to construct all of its extremely worthwhile huge pickup vehicles within the U.S., and by far has probably the most union members — 57,000 — of any Detroit automaker. This got here at the next price than rivals, who went via chapter and constructed truck vegetation in Mexico, he mentioned. However Ford thought it was the “proper form of price,” Farley mentioned.
“Our reliance on the UAW turned out to be we have been the primary truck plant to be shut down,” Farley informed the convention. “Actually our relationship has modified. It’s been a watershed second for the corporate. Does this have enterprise affect? Sure.”
The UAW made sturdy wage positive aspects after a six-week strike at chosen vegetation run by Ford, General Motors and Jeep maker Stellantis. Prime-scale manufacturing facility employees received 33% raises in a contract that runs via April of 2028, taking their prime wage to round $42 per hour.
A message was left Thursday looking for remark from the union.