Ford CEO Jim Farley Contemplates Future Vehicle Production Locations After UAW Strike
In a recent turn of events, United Auto Workers President Shawn Fain publicly endorsed President Biden for re-election and criticized former President Donald Trump, claiming that he “doesn’t care about the American worker.” This endorsement comes in the wake of Ford CEO Jim Farley’s announcement that the company will carefully consider where it builds future vehicles following the United Auto Workers (UAW) strike.
The UAW strike had significant consequences for the Detroit automaker, with the company’s Kentucky Truck Plant in Louisville being the first to shut down when thousands of UAW union members walked off the job. This move played a crucial role in the UAW’s strike against Detroit’s Big Three automakers – Ford, General Motors, and Stellantis.
During the Wolfe Research Global Auto Conference in New York, Farley acknowledged the challenging nature of the strike, emphasizing that Ford had prided itself on not having a strike since 1970. He also highlighted Ford’s commitment to its UAW workers, with 57,000 employees and 100% of its trucks being made in the U.S. by these workers. Farley contrasted this with their competitors who had gone through bankruptcy and moved production to Mexico and other countries.
“Our competitors do not do that. They went through bankruptcy, and they moved production to Mexico and other places. So it has always been a cost for us. And we always thought it was the right kind of cost,” Farley explained.
The shutdown of Ford’s plant marked a watershed moment in their relationship with the UAW. Farley acknowledged that this event would have business implications for the company. The strike cost the industry billions of dollars, prompting all three major automakers to ratify record contracts with the union in order to resume production.
In response to Farley’s comments, UAW President Shawn Fain urged Ford to prioritize the future of the American auto industry and recommit to American workers. Fain suggested that Ford should not seek the cheapest labor globally but instead focus on supporting American workers.
President Biden’s involvement in the UAW strike is worth noting. Last September, he marched alongside the union members and encouraged them to persevere. This marked the first time in modern history that a president appeared alongside striking workers, highlighting the significance of the event.
As Ford evaluates its future vehicle production locations, it is clear that the UAW strike has had a lasting impact on the company’s decision-making process. The strike served as a wake-up call for Ford, prompting them to reassess their relationship with the UAW and consider the implications of their competitors’ strategies.
Only time will tell how Ford’s future production locations will be affected by this strike and whether they will prioritize American workers and production. As the automotive industry continues to evolve, it is crucial for companies like Ford to strike a balance between cost-efficiency and supporting their workforce. The decisions made in the aftermath of the UAW strike will shape the future of Ford and its commitment to American manufacturing.