Posts tagged Jim Farley
Musk May Face Someone Else Who’s Ready for a Cage Fight
October 10, 2023 // The long-running decline in union membership mirrors the decline in Detroit’s share of the US vehicle market. That was 90% during the industry’s, and organized labor’s, 1960s heyday. By the time of the debacle of 2009, it had fallen to about 50%. Now it’s closer to 40%. As Kevin Tynan, automotive analyst at Bloomberg Intelligence, points out, the Big Three have effectively downsized by ditching cheaper models and focusing on higher-priced trucks and SUVs to chase profits. As they attempt to open up a new avenue of growth, EVs, they are confronted with big near-term costs that higher pay settlements will exacerbate. “The UAW must broaden its view if it is going to increase its membership,” says Tynan, adding “they have to stop only going back to GM, Ford and Stellantis. There is no more blood in those stones.” The UAW has been aware of this for some time, which is why it targeted foreign automakers’ factories — so called “transplants” — and Tesla itself at various points over the past decade. Such effort has been largely in vain. Tesla, meanwhile, has become profitable at scale only recently. The company’s identity as a disruptive newcomer, with plants far from the UAW’s heartland around the Great Lakes, is another barrier. It is harder to entice workers into a union when their employer is hiring at breakneck speed rather than shedding thousands of jobs. Tesla has also pushed back aggressively against unionization, as those NLRB rulings attest (Tesla is appealing several of these).
GM secures new $6 billion credit line as UAW strike costs reach $200 million
October 5, 2023 // General Motors secured a new $6 billion line of credit as the automaker braces for additional strikes by the United Auto Workers union. The targeted strikes have already cost the automaker $200 million during the third quarter, GM said Wednesday. The new line of credit is “prudent” to bolstering GM’s balance sheet amid expectations that the union may expand and prolong strikes against the company, GM CFO Paul Jacobson said.
Op-ed: A Raise for Auto Workers May Imperil Biden’s Electric Vehicle Ambitions
October 5, 2023 // Ford CEO Jim Farley said the UAW's proposals could send the automaker into bankruptcy, while Barra said they were not "realistic." Dan Ives, research analyst for Wedbush Securities, said in a note to investors that the UAW's demands, if fully accepted, could cause automakers "to pass these costs onto the consumer" by increasing E.V. prices by as much as $5,000 each. By visiting an active picket line, Biden made his preference clear in the fight between unions and management. But depending on how the negotiations go, he may not be able to have it both ways: Either UAW members can get a big raise, or automakers can push forward in the transition to electric vehicles.
Ford makes new offer in US labor dispute, GM furloughs more workers
October 4, 2023 // The UAW declined comment Tuesday on Ford's new offer. The UAW said on Monday it presented a new contract offer to General Motors (GM.N). GM said despite the offer "significant gaps remain." The UAW also held a new round of bargaining with Chrysler-parent Stellantis (STLAM.MI) Monday. Earlier Tuesday, GM said it furloughed 163 UAW workers at GM’s Toledo Propulsion Systems plant that makes transmissions for both the automaker's Missouri and Lansing Delta Township assembly plants that are on strike.
Ford pauses EV battery project; UAW calls decision ‘shameful’
September 27, 2023 // The Marshall project, named BlueOval Battery Park, was a collaboration with a Chinese firm called CATL. Michigan lawmakers had granted the project about $1.7 billion in cash and other forms of corporate welfare. BlueOval Battery Park drew major scrutiny, from Marshall residents to officials in Lansing and Washington, D.C. The chairs of three U.S. House committees sent letters to Ford CEO Jim Farley to inquire about the partnership; two of those committees said they were investigating the matter themselves. Republican lawmakers in Lansing said Ford’s decision is a commentary on the state of Michigan’s business climate, electric grid and energy transition. “After failing to land other high-profile Ford deals, Gov. Whitmer gave away the store to bring Ford to Marshall,” said Republican House Leader Matt Hall, R-Richland Township.
Opinion: Bernie Sanders to Big 3 CEOs: “It is time for you to end your greed.”
September 19, 2023 // Bernie Sanders: "the average American worker is worse off today than he or she was 50 years ago."
UAW locals get marching orders for strike against Big Three
September 14, 2023 // At 10 p.m. on Thursday, UAW President Shawn Fain announced three locals were selected to start the strike at midnight. Those locals represent Ford Michigan Assembly Plant in Wayne, Stellantis Toledo Assembly Complex in Ohio and General Motors Wentzville Assembly Center in Missouri. For the first time in union history all three companies came to the UAW’s Solidarity House downtown Detroit, Fain said. All three automakers have made multiple counteroffers but none of been accepted. Fain says the companies were slow to come to the table at the beginning of negotiations.