Ford announces management shuffle as UAW strikes continue

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This development comes despite the continued autoworkers strike showing scant indications of resolution.

Galhotra, formerly in charge of the Ford Blue unit responsible for gas and hybrid vehicles, will now oversee the global industrial system of the automaker.

Meanwhile, Andrew Frick, who previously handled sales and distribution functions, trucks, SUVs, and enthusiast vehicles for Ford Blue, in addition to overseeing operations in Mexico and Canada, will take over Galhotra’s former role within the unit.

“These moves will drive clarity and simplicity across Ford, so we can significantly ramp up our capabilities and combine them with businesses that are focused on the needs of different customers,” said Ford CEO Jim Farley.

Following the UAW’s directive for its workers to strike at Ford’s Kentucky Truck plant last week, Galhotra told the media that the company was “at the limit” for what they can spend toward increased wages and benefits.

Galhotra emphasized that pushing beyond this point would compromise the company’s ability to make vital investments in its operations.

Meanwhile, automakers are grappling with continued UAW strikes, leading to an estimated total economic loss of $7.7 billion through October 12, as reported by the Anderson Economic Group of East Lansing, Michigan on Monday.

As Ford prepares for its third-quarter earnings report scheduled for October 26, numerous uncertainties remain, primarily centered around the repercussions of the UAW negotiations on U.S. labor costs and the strategies it will employ to limit losses within its EV business, compounded by reduced demand attributed to higher interest rates.

In response, Ford has increased its focus on making hybrid vehicles. Last week, it announced plans to temporarily reduce production at its Michigan plant, which manufactures the electric F-150 Lightning pickup truck, by eliminating one of the three shifts.

Shares of F are down 1.62% in mid-day trading on Wednesday.