Tag Archives: Ford Motor Company

If No One Wants It, It Won’t Sell

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On Sunday, Breitbart posted an article about the problem Ford Motor Company is having selling electric vehicles.

The article reports:

Ford Motor Company reported a whopping $132,000 loss on each electric vehicle (EV) sold during the first three months of 2024, amassing a $1.3 billion loss.

The auto manufacturer’s electric vehicle unit revealed Thursday that they experienced a 20 percent decrease in sales volume and were forced to slash prices due to low consumer demand, CNN reported.

Keep in mind that the Biden administration has set a goal of half of all new cars to be electric by 2030. That is only six years away.

The article concludes:

Ford announced earlier this month that the company will delay producing two new electric models, opting for hybrid vehicles instead. 

“Many companies rushed in too fast with E.V.s that were too expensive and there was not as much of a market for them as they thought,” Sam Abuelsamid, transportation and mobility analyst at research firm Guidehouse Insights, told the New York Times. “That’s made it a lot tougher to sell those vehicles.”

At this point I would like to mention that I think the electric Ford Mustang is an abomination that should never have been allowed to happen. I understand that its get-up-and-go would put my Mustang to shame, but it just doesn’t have the right look!

This Green Energy Thing Just Isn’t Working

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On Friday, John Hinderaker posted an article at Power Line Blog about the current state of green energy.

The article reports:

Wind and solar are both terrible methods of generating electricity, both expensive and unreliable. The one thing that can make the situation worse is the drive to electrify everything, including motor vehicles. The impracticality of this “green” vision has become blindingly obvious, and the “green” movement has begun to fall apart.

The article cites a few recent articles on the subject.

From the Telegraph: “Electricity prices ‘must rise by 70pc to pay for more wind farms.’”

No new wind farms will be built off Britain’s shores unless the Government lets operators earn more money from the electricity they produce, the chief of the nation’s biggest generator has said.

Tom Glover, country chair of RWE’s UK arm, said the price offered by the Government to wind farm operators must rise by as much as 70pc to entice companies to build.
***
His warning follows the disastrous result of the last offshore wind allocation round in September, which ended in a humiliation for ministers with not one company offering to build new offshore wind farms.

From Robert Bryce: “Ford Lost $62,016 For Every EV It Sold In 3Q.”

The bloodbath in Ford Motor Company’s EV division continues. On Thursday, Ford reported an operating loss of $1.3 billion in its EV division during the third quarter. That translates into a loss of $62,016 for each of the 20,962 EVs it sold during the period.

That’s a smaller loss than the company recorded in the second quarter, when it lost $72,762 for each EV and the $66,446 it lost per EV during the first quarter.
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In its October 26 press release, Ford provided an additional comment on the EV losses, saying, “According to the company, many North America customers interested in buying EVs are unwilling to pay premiums for them over gas or hybrid vehicles, sharply compressing EV prices and profitability.” …

That’s a truth bomb of the first order, one to which veteran observers of the EV hype should rightly reply, “ya think?” Consumers, that is, consumers who aren’t part of the Benz and Beemer crowd, have been unwilling to pay premiums for EVs throughout the century-long history of the EV business. The question that Ford shareholders should be asking the company’s management, and CEO Jim Farley in particular, is obvious: “What the hell took you so long to recognize that customers aren’t willing to pay high prices for EVs?”

I don’t know if I can ever forgive Ford for what it did to the Mustang!

This is what happens when the government interferes in the free market.

When Reality Catches Up With Business Ventures

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On Monday, The Federalist reported that Ford Motor Company is stopping work on a plant in Marshall, Michigan that was going to make batteries for electric cars.

The article reports:

Ford Motor Co. is halting work on a $3.5 billion plant in Marshall, Michigan, that would make batteries for electric vehicles.

The announcement came after the automaker in July projected its EV unit would lose $4.5 billion this year, about 50 percent more than initially expected, and that it was slowing its plans to increase EV production, according to Reuters.

The delay also comes as Ford is in the midst of talks with the striking United Auto Workers union. President Joe Biden plans to join a UAW picket line on Tuesday, a day ahead of a planned visit to the workers by former President Donald Trump.

It is becoming obvious that American consumers are not all that enthralled with electric vehicles. The high cost of the vehicles, the time consumed in charging the vehicles, issues regarding how far the vehicles will travel on a charge, the fire hazard of an electric vehicle, the cost of replacing the batter in an electric vehicle, and the increased insurance rates insurance companies are charging for electric vehicles are all unresolved issues in the minds of consumers.  (Also, in my humble opinion, the electric Ford Mustang is a disgrace to its heritage! I realize that it can go really fast, but it doesn’t look good doing it!)

Ford Cars Will Still Have AM Radios

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On Tuesday, Just the News posted an article about Ford Motor Company and their reversal of the decision not to put AM Radios in their cars next year.

The article reports:

The Ford Motor Company on Tuesday announced that it would not eliminate AM radio from nearly all of its new vehicles amid considerable pushback from lawmakers and consumers.

“After speaking with policy leaders about the importance of AM broadcast radio as a part of the emergency alert system, we’ve decided to include it on all 2024 [Ford] & [Lincoln] vehicles,” wrote CEO Jim Farley on Twitter. “For any owners of Ford EVs without AM broadcast capability, we’ll offer a software update.”

“Customers can currently listen to AM radio content in a variety of ways in our vehicles – including via streaming – and we will continue to innovate to deliver even better in-vehicle entertainment and emergency notification options in the future,” he continued. “Thanks to our product development and manufacturing teams for their quick response to make this change for our customers.”

The company had not originally planned to include AM radio in most of its new vehicles and had cited research indicating that less than 5% of in-car listening came from AM stations. The decision generated significant backlash from right-leaning pundits and lawmakers.

Lawmakers from both sides of the aisle noted that AM radio is a key component in the U.S. Emergency Alert System, with Wisconsin GOP Rep. Mike Gallagher and New Jersey Democratic Rep. Josh Gottheimer urging Federal Emergency Management Agency Administrator Deanne Criswell to assert the importance of maintaining AM radio in vehicles.  Talk radio host John Catsimatidis and former Vice President Mike Pence also teamed up to create a public service announcement in support of AM radio.

AM Radio is also the home of a lot of conservative talk shows. There is a possibility that the company may have been under pressure to eliminate AM Radio as part of the continuing effort to squelch conservative speech.

A Bridge Too Far?

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On Monday, BizPacReview reported a newly published patent application by Ford Global Technologies that “generally pertains to systems and methods to repossess a vehicle.”

The article reports:

The 14-page document included diagrams and descriptions detailing a progression in communications that would ultimately result in the car driving itself to a lending institution or repossession agency should the owner fail to respond to notifications of delinquent payments.

“When an acknowledgement is not received within a reasonable period of time, the first computer may disable a functionality of a component of the vehicle or may place the vehicle in a lockout condition,” the abstract detailed and noted for safety concerns, “The lockout condition may be lifted momentarily in case of an emergency to allow the vehicle to travel to a medical facility.”

The patent went on to describe the escalation that might occur following missed payments wherein the stereo could first be utilized to “emit an incessant and unpleasant sound every time the owner is present in the vehicle.”

After the patent was published, Ford released a statement that explained, “We don’t have any plans to deploy this,” and detailed that in 2022 they were granted 1,342 patents.

Note that the statement was made after the patent was published.

The article concludes:

Also of note, Cox Automotive reviewed the delinquency rates in the automotive industry and found a 20.4 percent increase in borrowers at least 60 days behind on payments in January over the year prior. Overall, defaults had increased by 33.5 percent from 2022, and these rates, the highest measured since 2006, had led to an increase in repossessions of 11 percent.

All that to say, while it may not be in their immediate plans, Ford is likely to seriously consider the use of this technology should the economy continue struggling.

I understand the problem, but if people held on to their cars longer, would the price of cars go down because of decreased demand?

Serves Them Right

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On Wednesday, The Epoch Times posted an article reporting that Ford Motor Company is recalling nearly 50,000 Mustang Mach-Es produced between May 27, 2020, and May 24, 2022, that do not have the proper repairs. Ford said it is working to develop a fix for the 48,924 cars that have experienced a loss of power, overheating, and startup problems. I understand that Ford Motor Company manufactures the Mustang, but they obviously do not understand the car. There is no way the Mustang should ever be an electric car.

The article reports:

“In the affected vehicles, it is possible that the high voltage battery main contactors may overheat, which can result in an open contactor or welding condition. Should the contactors weld closed while driving, a powertrain malfunction warning light will be illuminated on the next drive cycle, along with a no start condition,” the company said in a letter.

According to Ford, the issue stems from a battery main contactor that can overheat and may remain stuck open or become welded.

“Should the contactors weld closed while driving, a powertrain malfunction warning light will be illuminated on the next drive cycle, along with a no-start condition,” said Ford.

Ford spokesperson Said Deep told Nexstar the problem specifically relates to the vehicles’ “Direct Current” fast charging, adding that there is a chance the better can overheat, which “may lead to arcing and deformation of the electrical contact surfaces.” That may lead to the car losing power while driving, Deep said, significantly raising the risk of an accident.

Deep added that the repair will be fixed remotely through an “Over-The-Air (OTA) deployment” of a software update starting in July. Owners of the electric vehicle can take their Mach-Es to a Ford dealership for the software update.

They have ruined the Mustang. Software update indeed.

This Is Only The Beginning

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The Epoch Times is reporting today that Ford Motor Company is suspending production in its manufacturing plant in Mexico’s Sonora state.

The article reports:

Ford had also suspended production from Oct. 11–12 at its Hermosillo plant, where it makes its Bronco Sport SUV and Maverick compact pickup.

The union did not specify which materials were in short supply, but other automakers have been struggling with a chip shortage as manufacturers shifted production toward parts needed for laptop computers, cellphones, and video games during the pandemic.

Ford did not immediately respond to a request for comment.

Earlier this month, Ford said it would suspend production at its Flat Rock, Michigan, plant and at parts of its Kansas City, Missouri, plant.

The global shortages, attacks on civil liberties, and attacks on small businesses are all part of “The Great Reset.”

In June 2020, The Hill posted an article about The Great Reset.

The article reported:

For decades, progressives have attempted to use climate change to justify liberal policy changes. But their latest attempt – a new proposal called the “Great Reset” – is the most ambitious and radical plan the world has seen in more than a generation.

At a virtual meeting earlier in June hosted by the World Economic Forum, some of the planet’s most powerful business leaders, government officials and activists announced a proposal to “reset” the global economy. Instead of traditional capitalism, the high-profile group said the world should adopt more socialistic policies, such as wealth taxes, additional regulations and massive Green New Deal-like government programs. 

“Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed,” wrote Klaus Schwab, the founder and executive chairman of the World Economic Forum, in an article published on WEF’s website. “In short, we need a ‘Great Reset’ of capitalism.” 

This is where we are. America right now is the last real bastion of freedom. As Americans, we can defend that freedom and the economic freedom that comes with it or we can quietly give up our freedom and our prosperity. One of the arguments for The Great Reset is the idea that we can eliminate poverty by taking money from the wealthy (which never happens–the money always winds up coming from the middle class) and give it to the poor and thus end economic inequality. It doesn’t work that way. If you gave every person in America $50,000 and checked back with them six months later, their position in the economic spectrum would not have changed significantly. I believe someone has already done an experiment similar to that. The way to end poverty is to educate people and encourage them to work their way out of it. Until you teach a student that he can succeed if he is willing to work, all the poverty programs in the world will not make a difference.

This Is Just Wrong

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This may not qualify as a news article for some people, but for me it hits close to home. I drive a Mustang convertible. It is the second Mustang convertible I have owned, and it is the perfect car for me. I am heartbroken over what Ford Motor Company has done to the Mustang for 2021.

This is a picture of the new electric Mustang:

No. Just no. I doesn’t look like a Mustang, and I suspect it does not sound like a Mustang. This is just wrong.

Why You Should Think Before You Vote

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Yesterday The Conservative Treehouse posted an article about Ford Motor Company’s decision to move production of a new electric vehicle from Avon Lake, Ohio, into Mexico.

The article reports:

Ford previously agreed to spend $900 million on a new product line for the Ohio plant; however, according to the UAW the location has shifted.

One way of looking at this change in direction from Ford relates to the cost of producing electric vehicles. First, it is far less expensive in Mexico (labor, environmental regulation, energy costs, etc); secondly, an outlook the new Biden administration will not strongly enforce USMCA compliance measures against U.S. multinational firms.

The UAW supported Joe Biden, but his policies will likely undermine their workers. Unfortunately, this was all too predictable. Partly because Biden-Harris owe Wall Street too much, and the multinationals are once again in control over the U.S. economy.

On Tuesday, Reuters reported:

In a letter made public on Tuesday, UAW Vice President Gerald Kariem said Ford intends to build a next-generation vehicle in Mexico.

“We 100% reject the company’s decision to put corporate greed and more potential profits over American jobs and the future of our members. We expect the company to honor its contractual commitments to this membership and when it fails to do so we will take action,” Kariem wrote in the Friday letter.

“We are intensely exploring our options at this time,” he added.

Electing Joe Biden as President put the swamp back in control. The welfare of the average American does not play a role in the decisions made by swamp creatures. The industries that came back to America because of President Trump’s tax and energy policies will be leaving in the near future.

This Is How America Works

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Yesterday The Daily Caller posted an article reporting that Ford Motor Company, GE Healthcare and 3M have started pooling their resources together to make ventilators, respirators and face shields to help fight the spread of the coronavirus.

That is fantastic news.

The article reports:

“We were the arsenal of democracy during two world wars,” Executive Chairman Bill Ford explained during his appearance Tuesday on the “Today Show.” We built iron lungs for polio patients. Whenever we’re called on, we’re there.”

“We’re going into our parts bin to see what can be done,” he added. “We’re a very opportunistic company.”

…“By coming together across multiple industries, we can make a real difference for people in need and for those on the front lines of this crisis,” the statement added. “At Ford, we feel a deep obligation to step up and contribute in times of need, just as we always have through the 117-year history of our company.”

Other manufacturers like General Motors, Fiat Chrysler Automobiles and Tesla have announced it will start repurposing to build medical equipment.

Jim Baumbick, vice president of Ford’s Enterprise Product Line Management team, said the company “wanted to help in any way we could in getting a range of critical protective gear in the hands of these brave men and women in the medical community fighting COVID-19 on the front line.”

“We see the need,” he added. “We just want to jump in and find a way to help.”

This is the sort of thinking that won World War II. It will also win the war against the coronavirus.

The Auto Industry Has Lost A True Innovator

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CNN is reporting today that auto industry icon Lee Iacocca has died. He was 94. He is credited as having played a major role in the creation of the Ford Mustang and the Chrysler minivan. As someone who has driven Ford Mustangs since the early 2000’s, I am grateful for his inventions.

The article reports:

Born Lido Anthony Iacocca in Allentown, Pennsylvania, on October 15, 1924, to Italian immigrant parents, he would go on to lead two major American car companies.

Iacocca started working at Ford Motor Company in 1946, and was a major figure in the development of the Ford Mustang — the first vehicle of its kind. He was named president of Ford in 1970, but was fired by Henry Ford Jr. in 1978.

“I began my life as the son of immigrants, and I worked my way up to the presidency of the Ford Motor Company,” Iacocca wrote in his 1984 autobiography. “When I finally got there, I was on top of the world. But then fate said to me: ‘Wait. We’re not finished with you. Now you’re going to find out what it feels like to get kicked off Mt. Everest!'”

He was then hired by Chrysler Corp. in 1978 and became the company’s CEO in 1979. He is credited with saving the company from bankruptcy.

Iacocca urged Congress to authorize the Treasury Department to guarantee $1.5 billion in bank loans for Chrysler. Chrysler needed the bailout to survive back to back recessions in the early 1980s. Chrysler repaid the loans early. Treasury made money on the stock it received as part of bailout packages.

With the help of more fuel efficient and competitive products such as the so-called K-cars — which included the Dodge Aries and Plymouth Reliant — Chrysler became strong and profitable again.

Iacocca led Chrysler during an era in which Asian and European imports first started to take a significant share of the US automakers’ portion of the American car market.

During the 1980’s and 1990’s, my husband was commuting 50 miles to work each way. We owned a significant number of K-cars during that time. I hope Lee Iacocca is spending his time in heaven designing a new breed of sports cars for angels to take for a spin!

He was truly an American success story.

Happy Birthday, Mustang

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This week Mustang turns 50. She looks pretty good for her age:

Yes, I know that’s a 2010, but that’s the picture I like!

Steven Hayward posted an article at Power Line about Mustang’s birthday (with a few comments on her history).

The article included the question, “Which gives off more air pollution, a 1969 Mustang parked in a driveway with the motor off or a  2013 Mustang, roaring down the road at 60 mph?”

The answer is surprising:

If you’re very clever (or keep up with Matt Ridley), you’ll know the answer is that the parked 1969 Mustang gives off more air pollution, in the form of unburned hydrocarbons evaporating through the old-school carbuerator and unsealed gas tank caps (among other places).  A good object lesson in the advancement of engine technology.  And the fact that the real heroes of environmental improvement were engineers with pocket protectors more than hippie environmentalists.

Amazing.

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The Final Chapter Of The General Motors Bail Out

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Yesterday Yahoo News reported that the Treasury Department has announced that all government-held shares of General Motors will be sold by December 31.

The article reports:

…On Thursday, it (Treasury Department) announced it sold 70.2 million shares of General Motors (GM) stock and intends to sell its remaining 31.1 million shares by Dec. 31.

Once the final sale is complete, however, US taxpayers will have lost nearly $10 billion of the $49.5 billion the federal government used to prevent the auto giant from collapsing in 2008, Treasury officials say. The loss offsets a greater calamity that would have occurred – the disappearance of 1 million jobs – if the federal government had not intervened, says Treasury Deputy Assistant Secretary Tim Bowler.

I guess the question I have at the end of this is how did Ford Motor Company continue without the government bailout, and could General Motors have done the same thing? The taxpayers lost nearly $10 billion in this transaction. What would have been the result of simply dividing that amount of money between those Americans who pay taxes? I think in the long run, it would have had a more positive long term effect on the economy.

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Fools Rush In…

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There is an old song, “Fools Rush In (Where Angels Fear To Tread).” I feel as if I am about to be a fool by writing the following article.

Paula Deen admitted under oath recently that she used a word that is politically incorrect (it is also a racial slur, demeaning, and should never be used). However, she is under attack because the word is considered the ultimate sin in political correctness. I am not going to mention that the word is used in rap music and movies all the time and no one seems to care. But Paula stepped on the toes of political correctness. As a result of admitting to the use of this word (and possibly for telling inappropriate jokes at one of her businesses), the Paula Deen empire is collapsing. Walmart, Target, and the Food Channel are cutting their ties with her. She is no longer considered a “good person,” something our society seems to think is very important. I haven’t heard anyone comment (it may have happened, but I haven’t heard it) on how many people who were offended by her use of a politically incorrect word will lose their jobs as a result of what is happening. How many restaurant workers will be laid off because of reduced business? How many television production people will be out of work because her show is no longer being produced? What will be the impact on commerce in the State of Georgia. I’m not being funny–I suspect her enterprises paid serious taxes to the State of Georgia in various forms.

With all that on the table, I want to bring you back to a previous time in America. America has been, at various times in its history, a racist nation. I believe we are doing better now, but I also believe what is happening to Paula Deen is not helpful to the country.

PBS posted an article about Anti-Semitism in the 1930’s on their website which states:

By 1939, the anti-Semites had two causes: keeping America out of the European war, and keeping European Jews out of America. And they had two famous men in their ranks. Henry Ford was a true rags-to-riches hero. He was also an anti-Semite, who railed incessantly against “the Jewish plan to control the world” in his newspaper, the Dearborn Independent (circulation allegedly 700,000), which Ford dealerships distributed free of charge. A collection of Ford’s ghostwritten columns was published as The International Jew: The World’s Foremost Problem — a best-seller in Germany.

The other famous American was Charles Lindbergh, who may have been an anti-Semite, but most certainly claimed publicly that Jews were trying, partly through their ownership of the media, to draw America into the war. Lindbergh represented America First, the powerful isolationist organization that, in fact, ejected Henry Ford for his anti-Semitic views. (See The Isolationist Movement.)

Henry Ford was also know to be distrustful of black people–that is why he hired immigrants from the Middle East to work in his manufacturing plants in the mid-West. That immigration during the early days of Ford Motor Company is one reason for the large concentration of Muslims in Michigan. I am sorry that Henry Ford was a racist, but I still love my Ford Mustang!

So what is the point? Racism and racists will always be with us–whether they are rightfully or wrongfully charged with racism. I believe that in most ways we are a more integrated society than we were fifty years ago, but I also believe that there are people among us whose livelihood depends on keeping the illusion of racism alive. Paula Deen needs to be allowed to continue her successful business ways without being condemned for reflecting the views of the time and place where she was raised. There is a true double standard here–the word she used is used routinely in rap music and movies. The politically correct police need to take a deep breath and get over themselves.

 

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What Are They Doing To My Car ?

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When I bought my latest Mustang convertible two years ago, I planned on keeping it forever. I added a number of accessories that I normally would not put on a car. Detroit has just convinced me that I made the right decision.

Yesterday the American Spectator posted an article about what Detroit is about to do to the Mustang. It’s not pretty.

The article reports:

Ford‘s new “Evos” concept features gull-wing doors, a rounded, aerodynamic body, and a smaller design clearly inspired by Europe. When Ford officially unveils its new Mustang in 2014, company insiders insist it will embrace this visual transformation.

More pertinent than its changing look will be its changing feel. Rumors abound, to the chagrin of drag racers, regarding the introduction of independent rear suspension. The five-liter engine supposedly morphs into a two-liter one. There is even talk of a hybrid Mustang.

This is the rendering of the new Mustang from their Facebook page. It took me a few years to get used to the look of the 2010 Mustang, but at least it looked like a traditional Mustang. This just doesn’t look right. And just for the record–my convertible is a six-cylinder. On the open road, it gets about 24 miles per gallon. If America would develop her own energy resources and stop cowtowing to OPEC, that wouldn’t be a problem.

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I’m Really Not Making This Up !

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1999-2004 Ford Mustang photographed in Washing...

1999-2004 Ford Mustang photographed in Washington, D.C., USA. Category:Ford Mustang IV (Photo credit: Wikipedia)

A group called Strategic Vision posted a story last week reporting research they did regarding which members of which political parties purchase which cars.

These are the results:

Democrats:

1. Honda Civic Hybrid
2. Volvo C30
3. Nissan Leaf
4. Acura TSX Wagon
5. Ford Fiesta sedan

Republicans:

1. Ford Mustang Convertible
2. Audi A8
3. Mercedes GL
4. Ford Expedition
5. Ford F-­‐150

I laughed when I read this–I drive a Ford Mustang Convertible. An article at Power Line, which reported the results of the study, concluded:

All of this adds up to one more illustration of the fact that it is a heck of a lot more fun to be a Republican than a Democrat.

I agree.

 

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On A Personal Note

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2010 Ford Mustang photographed in Fort Washing...

Image via Wikipedia

For anyone who has been reading this blog for a while, I would like to update you on the rear window defogger on my Mustang Convertible. As you recall, the Mustang is a 2010 and had less than 14,000 miles on it when the defogger stopped working. The dealer told me that it was not covered by warranty and that I would have to spend $2000 out of pocket to replace the top. I was not happy with that answer and wrote to Ford. Initially Ford was not particularly helpful, so I wrote to the state Attorney General Consumer Affairs division and the Better Business Bureau. I did contact Ford again before I filled out the paperwork for the Better Business Bureau. The customer service person I got was very helpful, but the problem was still unsolved. After I contacted the Better Business Bureau, Ford called me to schedule an appointment with a “Ford Engineer” at the dealership. The rear window defogger is now working. The total cost to me was $7 (I put gas in the loaner car).

What have I learned from this? All future work on the car will be done at a different dealership–had I not pursued this, I would have spent $2000 that I don’t have and didn’t need to spend. The Better Business Bureau is there for a reason–don’t be afraid to contact them if you have a legitimate problem with a business. The Consumer Affairs division of the Attorney General’s office was also extremely helpful. As consumers, we do have certain rights, but we need to be willing to exercise them.

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I Guess It Depends On Your Idea Of A Good Investment

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2010 Ford Mustang photographed in Fort Washing...

Image via Wikipedia

In my head I can hear my stockbroker yelling, “Dump that turkey!” What am I talking about? The current state of the government’s investment in General Motors.

Yesterday the Daily Caller posted an article about the current state of the stock in General Motors that the government still owns.

The article points out:

President Obama glowingly defended the $85 billion auto industry bailout during a speech to Detroit auto workers Friday, saying “the investment was worth it.”

But the government still owns 500 million shares of General Motors which, if sold at today’s market price of $20 a share, would leave taxpayers on the hook for $16.5 billion in losses.

And…under the law of unintended consequences (I’m not sure about the unintended part), the agreement the government signed with General Motors and Chrysler makes Ford (the company that is not partially owned by the government) the only company that the United Auto Workers (UAW) can strike against.  As reported in rightwinggranny.com on October 13, 2011, the UAW is already making plans to strike Ford Motor Company.

Where is this going? Unless someone throws a wrench in the works, it is leading to a nationalization of the American auto industry.

My husband, a drive-by reader of this site, just pointed out to me that if the UAW strikes Ford, forcing them to be bailed out, then the UAW will not be able to strike any American auto company. Payback is a *****!

 

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The End Of Free Enterprise In The American Automobile Industry

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2010 Ford Mustang photographed in Fort Washing...

Image via Wikipedia

Today’s Chicago Sun-Times is reporting that the union workers at Ford Motor Company’s Chicago assembly plan have voted to reject a new four-year contract proposed by Ford Motor Company.

I would like to repost a quote from an article posted at rightwinggranny.com on September 19, 2011:

Workers at Chrysler Group LLC, whose contract also expired on September 14, continue to negotiate for terms of their new deal.

The UAW is not allowed to call strikes for workers at GM and Chrysler under the terms of the federal bailouts which those companies received.

Workers at Ford Motor (which did not receive a federal bailout, which allows them to strike) are also in talks for a new contract.

One of the problems the union workers have with the proposed contract:

Some workers are angry that in the wake of Ford earning $9.3 billion in profits the last two years, the contract does not give back some of the things they lost in previous agreements, including cost-of-living raises. They are also mad about Ford CEO Alan Mulally’s $26.5 million pay package for 2010.

Also included in the proposed contract:

The deal would also commit Ford to hiring a total of 2,000 workers in the Chicago area, including 1,100 to be part of a new third shift at the company’s Chicago assembly plant. The contract agreement calls for Ford to hire 900 workers at its stamping plant and assembly plant within the next four years.

The most amazing statement in the article:

Morton (Grant Morton, United Auto Workers Union Local 551 plant chairman) said he still expects the 1,100 new jobs and new third shift at Ford’s Chicago assembly plant even if the contract does not pass. That is because the company plans to produce sedan and SUV versions of its new Police Interceptor vehicle at the plant. The vehicle will be launched in February. The plant has already produced a couple hundred of the Interceptors, according to Morton. The plant also produces the Lincoln MKS, Ford Taurus and Ford Explorer.

Something has gone horribly wrong with the way people look at their jobs and the companies that hire them. I suppose heads of corporations make ridiculous money. They also work a lot of hours and carry a lot of weight on their shoulders, why shouldn’t they be paid for it? What relationship does that have to the man who does an honest day’s work on an assembly line and goes home when the whistle blows? As employees, we need to be concerned about making ourselves more valuable to the companies we work for rather than worrying what the officers of the company make. I guess this is a very old-fashioned idea, but generally speaking, people are paid for the jobs they do. Some industries pay better than others, and some jobs pay better than others, but usually if you want a really high-paying job, you either have to have skills that are unique and hard to find, or you have to work at a job that has a high risk of failure. Those of us who are ‘average’ are going to receive ‘average’ wages. I’m sorry, that’s just the way it is, and no amount of labor disruption or strikes against companies will change that. The only thing a prolonged strike against Ford will do is create financial problems for the company and put jobs at risk. Considering the economics of the present time, that is probably not a really good idea.

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General Motors (aka Government Motors) and the UAW Have Agreed On A Contract (Or Why I Drive A Mustang)

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Normally, I wouldn’t particularly care whether or not GM reached a contract agreement with the UAW, but since the government has made me a stockholder, I thought that maybe I should pay attention.

The International Business Times reported on Saturday that a new contract between GM and the UAW has been tentatively agreed on. The contract includes signing bonuses and better profit sharing for the employees.

The article reports:

Workers at Chrysler Group LLC, whose contract also expired on September 14, continue to negotiate for terms of their new deal.

The UAW is not allowed to call strikes for workers at GM and Chrysler under the terms of the federal bailouts which those companies received.

Workers at Ford Motor (which did not receive a federal bailout, which allows them to strike) are also in talks for a new contract.

Any bets on the possibility of a UAW strike action against Ford this year?

There is one aspect of this contract that I could not find any reporting on. In his book, Car Wreck, Mark Ragsdale explains an auto industry practice called ‘jobs banks.’ Jobs banks require that two and a half years of wages be paid to laid off workers. On February 10, 2009, Ford Motor Company announced it had negotiated jobs banks penalties out of its UAW contracts. Because Ford rejected federal bailout money, the UAW was forced to negotiate in order to avoid the company going bankrupt. I suspect the UAW will try very hard this year to put those jobs banks penalties back in.

Taxpayer bailout money is currently paying General Motors workers for work while they sit at the ‘jobs bank’ all day and do nothing–another example of a total waste of tax dollars. Obviously when this was done by a private company (GM), it was not practical–the company had to be bailed out, so why is the government allowing the nonprofitable behavior to continue? It will be interesting to see what happens to the jobs banks in the new contract and if the UAW decides to strike Ford to put the jobs banks back in there.

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