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Farley reacts as UAW expands strike against Ford, GM

Members of the United Auto Worker union walk out of the Chicago Ford Assembly Plant as Lance Williams from Lansing, Ill., waves the UAW flag Friday. (AP)   As the United Auto Workers walk off the job at an additional Ford and General Motors plant, Ford CEO Jim Farley addressed investors and members of the media Friday, pleading the case for the company's latest overture to the union and addressing both public and investor concerns regarding the core issues facing American manufacturing.  Farley made a public case for Ford's efforts to resolve the dispute, expressing frustration with the ongoing stalemate and noting both the concessions Ford offered before the strike began and the signing of a contract with Canada's Unifor. Farley also acknowledged UAW President Shawn Fain's success in getting the union's message out, quipping: "Shawn has been on TV more than Jake from State Farm at this point." The first-ever simultaneous strike against the Detroit Three automakers enters its third week with threats of continued expansion, but little in the way of obvious concrete progress.  "If the UAW’s goal is a record contract, they have already achieved this," Farley said. "It is grossly irresponsible to escalate these strikes and hurt thousands of families." Farley also lamented the fact that EVs have become the subject of partisan conflict, with the company's recently announced battery production facilities taking heat from both pundits and investors as Ford was forced to press pause on the venture while negotiations continue. Former President Donald Trump dropped in to Michigan this week to declare EVs the enemy of blue-collar jobs. "They've become a political football, and that's a shame," he said. Friday saw an expansion of the UAW strike to Ford's Chicago assembly plant and GM's Lansing, Delta Township, Michigan, assembly plant, covering about 7,000 workers, Fain said in an announcement, bringing the total number of workers on the picket lines to 25,000. The strike will not include any additional members at Stellantis, where talks have reportedly been more productive. The Ford and GM plants went on strike at noon Eastern today (Friday). Ford builds the Explorer and Lincoln Aviator in Chicago. GM's Delta Township plant builds Chevy Traverse and Buick Enclave. "Despite our willingness to bargain, Ford and GM have refused to make meaningful progress," Fain said in a video address Friday morning.

Chevy's latest Silverado videos assume we're idiots

UPDATE: This article has been revised to reflect that any mention of materials used in a future Chevrolet Silverado is speculation. Can we have a sound, rational debate about the merits of aluminum versus steel? According to Chevrolet's latest marketing videos pitting the Silverado against the Ford F-150, the answer is no. The tone of all three ads is almost Orwellian: steel good, aluminum bad. Of course, this will all be a hilarious joke when an aluminum-bodied Silverado comes in 2018. That's an if, as a member of the General Motor public relations team has reminded me that any articles regarding future product are pure speculation. Until then Chevy needs to sell the current Silverado, with its body comprised chiefly of steel, against the Ford F-150's lightweight aluminum panels. Instead of touting the merits of the "most-dependable, longest lasting pickup," the strategy seems to center around negative propaganda towards the 13th element. The tone of all three ads is almost Orwellian: steel good, aluminum bad. Of the three videos, the most fair is Silverado vs. F-150 Repair Costs and Time: Howie Long Head to Head. Basically: aluminum costs more than steel, it's more difficult to repair, and requires special equipment for body shops. In terms of Chevy versus Ford, the blue oval truck costs more and takes longer to repair - an average of $1,755 more and 34 more days in the shop, according to the ad. But why stop there when you can have pitchman Howie Long raising an eyebrow at random facts? When Silverado Chief Engineer Eric Stanczak says of the Ford, "It's manufactured in a way that combines aluminum, rivets, and adhesive in a process that's different than Silverado." Long responds, "Huh. Interesting." At the end of the video, Long says "I'd be interested to know what happens to insurance costs." Note he's not saying anything substantive. If Chevy's legal team could sign off on some facts about insurance rates, it would be in this ad. On our Autoblog Cost to Own calculator, there is no significant difference in projected insurance costs between the two trucks. But at least that ad has facts. The other two videos are pure hype. In Cages: High Stength Steel, real people are asked what they think of aluminum and steel in a room with two cages. Then a bear is released into the room, and the subjects scurry to the safety of the steel cage.

Ford paying $750 million just to close plant in Belgium

According to a report from Reuters, Ford is shelling out $750 million in a severance deal that will see the automaker close its facility in Genk, Belgium. The automaker reached this deal with the 4,000 hourly workers employed at the plant last week, which means the company will pay out an average of $187,500 per worker.
Ford is still negotiating with the 300 salaried workers at the factory, which currently produces the Mondeo sedan. All told, Ford expects to lose around $2 billion in Europe thanks in no small part to the region's ongoing economic downturn, and two more plants are scheduled to be shut down in Europe this year. The company will log its $750 million payout under "special items" for this quarter.
As you may recall, Ford took a similar path in the US back in 2009 when the domestic market took a spill. Back then, the company shelled out around $50,000 per employee with at least one year of experience, plus either $25,000 toward a new car or an extra cash payment of $20,000. It would seem the cost of closing plants in Belgium is a much harder pill to swallow than in the States...