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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.

Hot-selling Ford Expedition, Lincoln Navigator get production boost

Ford is investing an additional $25 million in its Kentucky Truck Plant in Louisville to increase by 25 percent production of the hot-selling and all-new Lincoln Navigator and Ford Expedition SUVs. The investment adds to $900 million in previously announced spending at the plant, which also builds F-Series Super-Duty pickups and employs 8,400 workers. Assembly-line workers are putting in overtime and working voluntary weekend shifts to keep up with demand. The new investment will cover upgrades to the assembly line but does not involve further hiring, Ford spokeswoman Kelli Felker says. The popularity of the Ford Expedition and Lincoln Navigator is a bright spot as Ford stock has been battered by Wall Street amid concerns concerns about the automaker's future vision and slowness to detect trends. Ford says the investment is an example of its bid to improve "operational fitness," one of CEO Jim Hackett's common refrains. Ford says Navigator retail sales more than doubled in January, and Navigators are spending an average of just seven days on Lincoln dealership lots as customers trade in vehicles including Land Rovers and Mercedes-Benz. Nearly 85 percent of buyers are opting for high-end Black Label and Reserve trim packages, contributing to an average transaction price increase of more than $21,000 in January compared to a year ago. The 2018 Navigator won the North American Truck of the Year award and also topped a Detroit News poll of public favorites at last month's Detroit Auto Show. Sales of the Expedition, meanwhile, were up almost 57 percent last month as the full-size SUVs also spent an average of just a week on dealer lots. Platinum trim models represented 29 percent of sales, pushing transaction price increases up $7,800. Ford gave the 2018 Expedition an all-aluminum body to save mass in its first significant redesign since 2007. The plant last year got nearly 400 new robots, mainly in the body shop, to help increase line speed, and Ford added a robot lab where employees can test software tweaks or troubleshoot issues away from the factory floor. The Louisville plant also benefits from extensive new data analytics, with seven big-screen monitors providing minute-by-minute updates showing progress against hourly targets or alerting workers to pending parts shortages. A huge spare-parts "vending machine" lets workers more quickly locate needed parts and keep inventory at necessary levels.

Lincoln is changing the way it sells cars (for the better)

Tucked inside an outdoor shopping complex in Scottsdale, Arizona, among various trendy stores is something one would’ve thought hilariously out of place not so long ago: a Lincoln dealer. But this isnÂ’t any old dealership, Lincoln or otherwise. This would be the Sanderson Lincoln Boutique, the first of its kind for FordÂ’s luxury brand. Walk through the big glass doors and youÂ’re greeted by a 2022 Navigator on your right, a 2022 Aviator Grand Touring straight ahead, and to your left, an expansive coffee bar. Vintage promotional images from LincolnÂ’s midcentury glory years line the walls, which is a treat to anyone fond of that automotive era. There are smaller seating areas elsewhere, including one enclosed in glass presumably for more privately discussing a sale, but the overall vibe is reminiscent of an airline lounge. There are also no sales people: Those on hand are salaried product specialists who get paid the same whether you buy a car or not. Oh, and baristas, there to whip up some caffeine free of charge whether you buy a car or not. That seems like a recipe for being popular with teenagers, but I digress. Lincoln is planning for other such boutique stores, but the decision to create this one was all on an individual dealer, Sanderson Lincoln, with the full support of Lincoln. And according to Lincoln President Joy Falotico, such boutique stores and their car-buying model could complement radical changes already happening elsewhere in the car-buying realm. In short, the ongoing supply shortage is set to change everything. Customers are not only getting used to waiting for cars, but also ordering them and therefore getting exactly what they want. ThatÂ’s where boutique stores come in. At the same time, Lincoln and its dealers see the value in not keeping huge inventories of cars that will end up discounted or incentivized. Yes, that means being able to keep prices higher, which is a giant part of this, but it also means theyÂ’ll be delivering cars customers actually want. “We donÂ’t intend to go back to the old model of (overabundant) dealer inventory,” Falotico definitively said. She elaborated that moving to a model where customers increasingly order their cars could increase the build possibilities and opportunities for customization.