In a conference call, the head of Ford's combustion vehicle unit, Kumar Galhotra said the automaker is "at the limit" of what it can spend on higher wages and benefits for the United Auto Workers (UAW).
"We have been very clear that we are at the limit," said Galhotra. "We stretched to get to this point. Going further will hurt our ability to invest in the business."
Around 4,600 Ford workers could be idled because their jobs depend on production of Super Duty pickups and large Lincoln and Ford SUVs at Kentucky Truck, according to Ford manufacturing vice president Bryce Currie.
There have been 13,000 workers at Ford suppliers that have already been furloughed due to earlier UAW walkouts, Ford supply chain chief Liz Door said.
While Ford is open to reallocating money within its current offer in further bargaining with the UAW, they are also working with the union to find a way to bring workers at joint venture electric vehicle battery plants into the UAW-Ford agreement.
Shawn Fain, president of the UAW, ordered a strike at Ford's Kentucky Truck factory after a richer contract proposal was not acquired. UAW negotiators turned their attention to takes with Stellantis, hoping for better outcomes.
While officials at Ford warn that continued shutdowns from the strike will push an already fragile supply chain "toward collapse," Fain and other UAW officials have countered that the big three motor companies can afford to increase pay for UAW workers beyond the 20 percent to 23 percent they've already offered. All they would need to do is cut executive pay and rein in share buybacks.
In the wake of Fain's strike order at Ford's Kentucky Truck factory, many have questioned the necessity of the strike. Ford even went so far as to call the decision "grossly irresponsible."
With the loss of the Kentucky plant, analysts at Wells Fargo estimate that Ford will lose about $150 million per week in core profit from the strike. The plant is the company's most profitable operation, generating $25 billion in annual sales, about a sixth of Ford's global automotive revenue.
