In September of last year, the United Auto Workers (UAW) union initiated a strike against Ford, General Motors, and Stellantis, strategically targeting specific plants to maximize impact. For Ford, the focal point was its lucrative Kentucky truck plant, prompting the automaker to carefully reconsider its future production locations.
During the Wolfe Research Global Auto Conference, Ford CEO Jim Farley acknowledged a shift in the company’s relationship with the UAW, emphasizing the significant impact of having their primary truck plant shut down.
Following the halt in production of the Super Duty in Kentucky, Ford Motor Company Executive Chair Bill Ford visited the Rouge Visitor Center in Michigan, home to the F-150 assembly, appealing to union members to work together to resolve the contentious negotiations.
He highlighted the adverse effects of the decision to close the Louisville factory on numerous Americans. The strike at Ford’s Louisville facility commenced on October 11, nearly a month after the UAW began its strike, resulting in an additional 8,700 workers joining the picket lines.
Throughout the negotiations, the union also targeted Ram 1500, Chevrolet Suburban, and Yukon production, with Ford having the highest number of union members among the three automakers.
At the end of October, the UAW temporarily halted its strike after reaching agreements with Ford, Stellantis, and General Motors before Halloween.
By Thanksgiving, UAW membership ratified the three contracts, concluding the six-week standoff and securing raises, improved benefits, the elimination of the two-tiered employment system, and other concessions.
The enhanced wages and benefits will lead to an increase in vehicle prices, with Ford estimating a $900 rise due to the new contract once it takes effect.
Like its counterparts in the industry, Ford is adjusting its strategy to accommodate the transition to electric vehicles, prioritizing smaller and more affordable EVs in response to growing competition from Chinese manufacturers.