Ford CEO Jim Farley Provides Ratification Update with UAW

Key Points

  • 🚗 Ford CEO Jim Farley is focused on resuming full production and deliveries after ratifying the contract with the UAW.
  • 🏭 Plants in Michigan, Kentucky, and Illinois affected by the UAW strike are expected to reach full production schedules soon.
  • 💼 The UAW strike affected major automakers, including Ford, GM, and Stellantis, impacting production and posing challenges amid harsh economic conditions.
  • 📈 Ford aims to make 2024 successful with significant new product launches, including the Ranger, F-150, Expedition, Explorer, Lincoln Navigator, and Lincoln Aviator.
  • ⚙️ The company is working on the next generation of electric vehicles and software platforms, emphasizing the importance of on-time deliveries and top-quality cars.
  • 💰 The labor agreement with UAW added significant costs, prompting Ford to focus on improving productivity and efficiency to remain competitive.

Ford CEO Jim Farley said that the automaker is working to get production and deliveries back to full capacity after ratifying its contract with the UAW.

Farley believes the plants in Michigan, Kentucky, and Illinois that were affected by the UAW’s strike are “on track to reach full production schedules in the coming days.”

Ford was one of three large automakers, including General Motors and Stellantis, to feel the effects of the strike that the UAW performed in an effort to see wage increases and more flexibility with scheduling.

The stoppage in production put the three companies at a crossroads, especially as harsh economic conditions have continued to plague nearly every company, regardless of their sector, on Earth.

Terms were finally agreed upon, and Ford is working to get its more than 57,000 UAW-represented employees back to work, hoping to ramp production back to a point where 2024 will be as successful as past years have been for the company.

Farley said in his statement that 2024 is “one of our biggest-ever new product launch years in the U.S.” and that delivering cars with top quality and on-time is “critical” to the automaker’s success in the coming year.

“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,” Farley said.

Ford will also work to lower costs and eliminate waste throughout its 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,” Farley added.

Ford has a big 2023 and 2024 ahead of it. As this year winds down, most of the damage from the UAW strike and reversing it should be the focus, as Farley said. 2024 will be a year where the company will try and get its new vehicles out without much of a delay and regain momentum as a business.

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