Ford CEO Jim Farley said on Thursday that last fall's major strike led by the United Auto Workers (UAW) changed Ford's relationship with the union to the extent that Ford will "seriously consider" where to manufacture cars in the future.
Speaking at the Wolfe Research Global Auto Conference in New York, Farley said the company has always been proud of its relationship with the UAW and has avoided strikes since the 1970s.
However, last year, Ford's highly profitable truck plant in Louisville, Kentucky, was the first truck plant shut down by a UAW strike.
Farley stated that as the company considers transitioning from internal combustion engine vehicles to electric vehicles, "we have to carefully consider our (manufacturing) footprint."
"We ultimately became the first truck plant to be shut down because of our reliance on the UAW. Our relationship really changed. It's a watershed moment for the company. Does it have an impact on the business? Yes," Farley said.
Farley's comments raised questions about whether Ford's planned new small electric vehicle would be produced in Mexico, where labor costs are lower. Cars produced in North America are still eligible for U.S. tax credits.
In response to Farley's remarks, UAW President Shawn Fain said in a statement that Ford should continue to focus on building the best automotive industry instead of competing to lower wages.
"Maybe Ford doesn't need to move factories to the ends of the earth to find the cheapest labor," he said. "Maybe it needs to recommit to American workers and find a CEO who is interested in the future of the American auto industry."
When asked about Farley's comments, White House Press Secretary Jean-Pierre said President Biden believes in manufacturing goods in the United States and creating job opportunities. She said, "We will do everything we can to ensure that continues."
She added that Biden believes workers have the right to engage in collective bargaining like the UAW to secure better wages and benefits. She said, "That's something the president always speaks up for and stands up for."
