Automotive giant Ford Motor Co F was one of the Big 3 auto companies targeted with strikes by the UAW union in 2023.
The impact of the strikes continues to sort itself out for Ford's financials and future operations. Here's what CEO Jim Farley had to say.
What Happened: The UAW strike will see higher wages paid to Ford workers, which could impact margins and Ford's future investments. The topic was touched on Thursday by Farley speaking at a conference.
"Our reliance on the UAW turned out to be we were the first truck plant to be shut down," Farley said, as reported by the Associated Press. "Really our relationship has changed. It's been a watershed moment for the company. Does this have a business impact? Yes."
Farley said Ford would "think carefully" about where it would build its future vehicles as a result of the UAW strikes. The CEO spoke at the Wolfe Research Global Auto Conference on Thursday.
The Ford CEO said the company has the most union members of any Detroit automaker, which could make them the most impacted by the strikes.
Ford said that it expects to have $2 billion in costs this year, which could help "fully offset" the cost of the new UAW contract.
Related Link: Ford Q4 Earnings Highlights: Revenue Beat, EPS Beat, Supplemental Dividend, EV Update And More
Why It's Important: Farley's comments could spark speculation that Ford may consider building factories and having production outside the U.S.
Press Secretary Karine Jean-Pierre was asked about Farley's comments Thursday.
"We're going to do everything we can to make sure that continues," Jean-Pierre said.
Jean-Pierre added that President Joe Biden believes workers have the right to collective bargaining and pushing for better wages, in support of the UAW.
"That is something that the president is always going to speak for and is going to stand up for."
The UAW endorsed Biden for the 2024 presidential election last month.
Farley said the strikes could have an impact on Ford's transition from internal combustion vehicles to electric vehicles. The company has shifted its EV strategy to mostly focusing on lower-priced vehicles and work vehicles.
F Price Action: Ford shares closed at $12.52 on Thursday versus a 52-week trading range of $9.63 to $15.42. Shares of Ford are down 3% over the last year.
Read Next: 5 Things You Might Not Know About Ford CEO Jim Farley
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
