Cars and Drivers

Ford's Bill Ford's Anxiety

Douglas A. McIntyre

Published: October 17, 2023 9:50 am

Ford Executive Chair Bill Ford registered a deep concern about the UAW strike. His CEO, Jim Farley, made a similar plea weeks ago. Bill Ford will not acknowledge that he is a billionaire who makes millions of dollars a year. That gives the unions tremendous leverage and makes his complaints hollow. Bill Ford has not offered to take a pay cut as a symbolic gesture. No wonder the strike has continued. (These vehicles stopped production due to the UAW strike.)

According to the AP, Ford said that high labor costs would limit money available for new product development, So he must assume that the unions would take less money to help him make money. “It’s the absolute lifeblood of our company. And if we lose it, we will lose to the competition. America loses. Many jobs will be lost,” said the great-grandson of company founder Henry Ford. In other words, please help me, and I will help you. However, that is only true if union members do not ask for more money.

Ford (the company) also cannot wash away the fact that it makes billions of dollars. It has decided to invest billions in the development of electric vehicles. But management decided to take what may be a long shot. The union did not have a voice in that decision, as is the case at European car companies, where labor representatives sit on boards.

Unions may think the huge investment may be a huge risk, increasing the likelihood that they will be paid much better. Even worse, Ford is up against the likes of Tesla. And the appetite for Ford’s electric offerings appears to be slow.