Ford Issues Official Statement On UAW Contract Ratification

by Matt Posky

Published: November 20th, 2023

ford issues official statement on uaw contract ratification

While the United Auto Workers’ contract seems to be a done deal for all three Detroit-based automakers, Ford is the only brand that’s issued any formal statements on ratification thus far. But there’s not much to pick apart in the release. The company avoided opportunities to promote itself as the brand that seemed most willing to accommodate the UAW and only brushed against assertions that paying workers more would add to its operational costs.

It was still a corporate press release, however, and came with plenty of the usual trappings. Ford wanted to make sure readers understand it believes all the things they do, and always has, without getting too specific into exactly what that means.

But it wasn’t entirely empty and came directly from the Ford President and CEO Jim Farley. The executive again hinted that it’s interested in addressing quality control while reminding everyone that new products are forthcoming. Suggestions that the new labor agreement would result in higher operating costs may also be paving the way for the company to try and rationalize subsequent price bumps.

From Ford President and 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. 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 [the] 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.”

We’ll see where it all leads. For now, Ford leadership seems to be signaling business as usual and downplaying it having been slightly more affable toward the UAW than its main rivals. I’m not sure what the strategy is there beyond avoiding conflict with people who aren’t fond of the union. But the blade cuts both ways and it’s not likely to take any more heat or praise than General Motors or Stellantis for having reached a deal, as they’re all very similar to each other.

At the very least, the executive statement officially settles contract negotiations between Ford and the UAW for the foreseeable future.

[Image: Ford Motor Co.]

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Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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The Oracle on Nov 20, 2023

Jim Farley is looking haggard, a sign he’s way in over his head.

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- Lorenzo on Nov 21, 2023
  
  He's in over his head even when he's smiling and happy. Unless you mean it's starting to dawn on him?
  
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Redapple2 on Nov 21, 2023

1 new contract will add cost ~$1000 more per car.
2 we only make big profits on trucks. (must sell more per year for the max number of years)
3 BEV switch is costing billions and are not selling.
4 whatever ford pays for labor, the other big 2 pay too. So, size of contract not a huge deal
Uncle Sam can fix every problem with a snap of the fingers. Maximum azz kissing - all the time.

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