Back in mid-September, the United Auto Workers (UAW) began a targeted strike against Ford, General Motors, and Stellantis after the two sides failed to reach an agreement on a new contract. The strike ultimately lasted six weeks before Ford was the first to reach a new, tentative deal with the UAW in late October, with the other Detroit Big Three automakers following suit just a few days later. Last week, Ford’s UAW-represented workers voted to ratify that agreement – making it official – prompting a bit of a congratulatory statement from CEO Jim Farley.
“We are pleased the agreement has been ratified and we are very happy for our more than 57,000 UAW-represented employees and their families,” Farley said. “Ford believes in rewarding all of our people and growing the middle class in America – and we have shown that with our actions over many years. Now, we are getting back to work as one Ford team. Thankfully, we are on track to reach full production schedules in the coming days at our assembly plants in Michigan, Kentucky, and Illinois that were affected during the strike. I’m excited to personally get out to as many of our plants and operations as possible in the coming weeks and months to spend time with our teams who build our vehicles.”
“Ford is America’s No. 1 brand again and we want to build on that in 2024. We are entering one of our biggest-ever new product launch years in the U.S. We need to deliver these new vehicles on time and with top quality. This is critical!! I am talking about new Ranger and Ranger Raptor. New F-150 and F-150 Raptor. New Expedition. New Explorer. New Lincoln Navigator and new Lincoln Aviator. All told, we are refreshing about half of our U.S. volume in 2024. We are also working flat out on our next generation of electric vehicles and software platforms. It’s also imperative that we continue to attack cost and waste throughout our operations. The reality is that this labor agreement added significant cost, and we are going to have to work very hard on productivity and efficiency to become more competitive.”
As Ford Authority reported a few weeks ago, Ford will invest a total of $8.1 billion in regards to product commitments and other investments related to both ICE vehicles and EVs between now and the time the contract is set to expire in April 2028. Those investments are broken down into multiple plants and products, giving us a sneak peek at the future in that regard.