Last year's United Auto Workers' strike has significantly impacted Ford's relationship with the union, leading the automaker to reconsider its future manufacturing plans, according to Ford CEO Jim Farley. Speaking at the Wolfe Research Global Auto Conference in New York, Farley expressed that Ford has always valued its relationship with the UAW and had a track record of avoiding strikes since the 1970s. However, last year's strike saw Ford's profitable factory in Louisville, Kentucky, being shut down for the first time.
As Ford navigates the transition from internal combustion engines to electric vehicles, Farley emphasized the necessity of carefully evaluating the company's manufacturing footprint. He revealed that Ford made the decision to produce all of its highly profitable big pickup trucks in the United States, resulting in higher costs compared to competitors who established truck plants in Mexico after going through bankruptcy. Farley explained that despite the added cost, Ford believed it was the 'right kind of cost' to bear.
