UAW’s surprise strike could ‘force Ford to act’
The United Auto Workers extended their strike Wednesday night, which could spell trouble for Ford.
Yahoo Finance’s Pras Subramanian reports
The UAW called for an unplanned strike at Ford’s sprawling truck plant in Kentucky, a major escalation since the plant builds Ford’s F-250 through F-550 super-duty trucks, the Expedition SUV and the Lincoln Navigator SUV. While the best-selling F-150 was spared, the Kentucky Truck plant is responsible for $25 billion in annual sales, according to Ford.
The UAW said in a statement that the Kentucky Truck strike was called after Ford “refused to take further steps in negotiations,” marking a new phase for the stand-up strikes. “If they can’t understand that after four weeks, the 8,700 workers closing this extremely profitable plant will help them understand it,” Fain said.
Ford’s response was swift Wednesday evening: The automaker called the UAW’s latest move “extremely irresponsible,” but not surprising. The Kentucky Truck strike “has serious consequences for our workforce, suppliers, dealers and commercial customers,” the company added.
The UAW employs 8,700 workers at Kentucky Truck. But Ford officials said the impact on Kentucky Truck will impact dozens of other Ford operations and suppliers that employ about 100,000 workers.
The financial impact and pain point created by this move is significant.
“The attacks on Ford’s Kentucky truck plant hit some of the most expensive products they make, including the SuperDuty, which sells for up to $100,000,” said Sam Fiorani, automotive industry expert at AutoForecast Solutions (AFS). , told Yahoo Finance. “Extending the strike to this facility is intended to force Ford to take action and bring them to the negotiating table more quickly.”
Fiorani, whose company tracks auto production and productivity at plants around the world, says vehicle profits at Kentucky Truck can easily exceed $10,000 per unit, making them one of the most important in Ford’s product portfolio.
“It’s also an attempt by the entire industry to tell GM and Stellantis to step up their game or their large and profitable models would be targeted next,” Fiorani said.