Will UAW Strike?

[ultrarunner]

There may come a time when the only Unions remaining are in the government sector...

 

[NoTrespassing]

A bit of an exaggeration on spread, but really bad understanding of volume.

Volume creates economies of scale. Where you can lower unit costs and increase profit margin through operation efficiencies. The text book goal of any manufacturer.

Ford sold 640,000 F series trucks in 2022, the only cars they sell are Mustangs. Leading car manufacturers by revenue 2022 | Statista

 

[ultrarunner]

Ford sold 640,000 F series trucks in 2022, the only cars they sell are Mustangs.

Ford is worldwide and has divisions like Lincoln domestically.

Plus specialty autos still in the works...

 

[Pixguy]

I am now constantly solicited by the local Ford dealers to trade in my F150 or wife's Edge and at 5k under msrp. We're back in a buyers market for most cars.
Have you ever noticed how much they want for those little Rangers or full size Broncos? Nuts!

 

[Torvy]

I am now constantly solicited by the local Ford dealers to trade in my F150 or wife's Edge and at 5k under msrp. We're back in a buyers market for most cars.
Have you ever noticed how much they want for those little Rangers or full size Broncos? Nuts!

Imagine how much more it would be if the union boss gets his way.

 

[MAX-24-Dean]

UAW has not had COLA since 2009 when that was given up. I'm sure the $25 figure is adding in any increase with COLA.

2023 Resolution: Reclaim the Cost Of Living Allowance (COLA) Wage Adjustment - Unite All Workers for Democracy

The only substantial COLA increase I ever recieved in my lifetime, was when I left the union and started my own company.
If a cost of living increase is neccesary to survive, I would suggest they start thier own company and see how that works. From what I have seen over the years, most wouldn't make it on there own.
But they can make it in the union environment? What does that say about there worth in wages?

 

[Oaktree]

Ford sold 640,000 F series trucks in 2022, the only cars they sell are Mustangs.

What about the Edge and Escape? I know they're marketed as SUVs, but they're really just station wagons.

 

[Torvy]

You reminded me, I saw a Cadillac station wagon on the road yesterday. Laughed my arse off. Dad had a used '74 Sedan DeVille as his midlife crisis vehicle. He grew up dirt poor (family lost the farm in the Depression when he was a baby). Cadillac was his way of proving he made it. I'm pretty sure he would never have done that with a station wagon. (To be fair, we had a station wagon earlier, but it was strictly utilitarian).

 

[NoTrespassing]

What about the Edge and Escape? I know they're marketed as SUVs, but they're really just station wagons.

I guess they still sell a Focus in Europe?

 

[milkman636]

Imagine how much more it would be if the union boss gets his way.

There are probably other areas that Ford could curb costs: maybe start by reducing the compensation of executives that reduce the income stream down to one product line, that is under-simplified and due for refresh, and then bet all the profits from that line on green.

They will leave with multiple millions no matter where the ball is at when the wheel stops spinning.

 

[ruffdog]

This $9.2 billion DOE loan will give Ford plenty of cash to play with.................

Ford Qualifies For $9.2 Billion DOE Loan To Build 3 US Battery Factories - CleanTechnica

 

[Snobdds]

This $9.2 billion DOE loan will give Ford plenty of cash to play with.................

Ford Qualifies For $9.2 Billion DOE Loan To Build 3 US Battery Factories - CleanTechnica

This is super risky for Ford.

EV's are not selling for Ford. If they take the loan and can't repay it...I don't think they have enough reserves to take that charge off. Then it's game over.

EV's are going to bankrupt some long term companies due to unmaterialized hype.

 

[ruffdog]

I'm not sure Ford has paid off the $5.9B DOE loan from 2009 yet.

 

[Snobdds]

I'm not sure Ford has paid off the $5.9B DOE loan from 2009 yet.

DOE in 2009?

I thought they passed on troubled asset releif program (TARP). Are you confusing them for GM and Chrysler? Or was there another DOE loan that I'm not aware of?

 

[MAX-24-Dean]

This is super risky for Ford.

EV's are not selling for Ford. If they take the loan and can't repay it...I don't think they have enough reserves to take that charge off. Then it's game over.

EV's are going to bankrupt some long term companies due to unmaterialized hype.

Virtue signaling has never helped a company maintain long term profits!
Its all a facade.

 

[ruffdog]

DOE in 2009?

I thought they passed on troubled asset releif program (TARP). Are you confusing them for GM and Chrysler? Or was there another DOE loan that I'm not aware of?

Nope, not confused. If I remember right, the $5.9B loan was to be paid off by 2025. I see it was paid off in June of 2022....DOE site:

FORD

 

[Snobdds]

Well it was another DOE loan I was not aware of.

It took 13 years to pay off 5.9B. At the same payback rate, it will take Ford 19 years to pay back 9B. A lot can happen in 19 years...

I learned something today...

 

[NoTrespassing]

Virtue signaling has never helped a company maintain long term profits!
Its all a facade.

I'm not sure I understand the your post. Do you mean Ford is virtue signaling by manufacturing EVs?

 

[NoTrespassing]

The loan originates from the DOE’s Advanced Technology Vehicles Manufacturing (AVTM) program, which famously helped put Tesla on the map and more recently provided a boost for a joint venture of General Motors and LG Energy Solution to help fund the construction of a new lithium-ion battery manufacturing facility. Another recent recipient was Redwood Materials, the electric vehicle battery recycling and manufacturing venture founded by the former chief technologist at Tesla.
The loans are part of a broader effort by the Biden administration to boost EV manufacturing as it races to catch up with China, which controls around three-quarters of battery production globally. It’s also an important piece of the White House’s plan to promote clean energy amid the deepening climate crisis.

 

[WM75Guy]

Well it was another DOE loan I was not aware of.

It took 13 years to pay off 5.9B. At the same payback rate, it will take Ford 19 years to pay back 9B. A lot can happen in 19 years...

I learned something today...

Ford had a good marketing program, about how they didn't take TARP funds, but didn't tell the whole story. Around the time in 2008 that TARP came around, Ford asked Congress to approve a $9 billion line of credit. While Ford did not take TARP funds, they did to leave the option open to receive help. And they took out the DOE $5.9 billion loan in 2009 from another government bucket, which was repaid in 2022. Chrysler repaid their TARP loans in 2011. The Government sold their last shares of GM in 2013. Also, many other companies took some of the $700 billion in TARP funds which you didn't hear about, the banking industry being the largest.

https://home.treasury.gov/data/troubled-assets-relief-program

Ford seeks $9 billion line, aims to break even in 2011

Ford Motor Co <F.N> on Tuesday asked Congress for up to $9 billion in a government credit line to support its restructuring, saying it expects to break even or be profitable in 2011.

www.reuters.com