Biden Weighs In On Strikes, Ford Bites the Apple, Hardware Standard - Subscription Optional

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Tuesday is already moving as we talk about the President’s comments about the ongoing contract negotiations between the UAW and Big 3. We also talk about Ford’s new executive from Apple and his perspective on putting subscription ready hardware in every vehicle. 

• "I’m asking all sides to work together to forge a fair agreement," President Biden said in a statement as he urged union auto workers and Detroit's Big Three automakers to reach a new agreement before their contracts expire next month.
  • Biden stressed the need for a middle-class-supportive contract amid industry tech shifts, while the UAW, representing 150,000 workers, considers a strike if no agreement is reached by September 14, with UAW President Fain pushing for better wages in talks with Biden and lawmakers.
  • A potential strike could result in significant financial losses for the automakers, with Deutsche Bank estimating a hit of $400 million to $500 million per week of production for each affected automaker.
    
    
    
• Ford has appointed former Apple executive Peter Stern as president of its new business unit, Ford Integrated Services, to lead the company's customer experience strategy.
  • Stern was vice president of services at Apple and oversaw Apple TV+, iCloud, Apple News+, Apple Books, and Apple Arcade, as well as its ad and cloud services
  • Stern's team at Ford will unify hardware, software, and services across three units: Ford Blue), Model E, and Ford Pro, while also managing services marketing, the Ford Next venture studio, and "out-of-vehicle" experiences like utilizing car cameras for non-driving activities.
  • “Everyone is so focused on the EV transformation,” Ford Chief Executive Jim Farley said on a call with reporters, “but I keep saying the biggest change in our industry is to go to a digital product and physical services.” He also added that “Our industry is littered with bad choices about subscription services, and that is not the direction we’re going in,”
  • Ford reported over 550,000 paying subscribers to its software and services, emphasizing a move away from charging for once-standard items like heated seats.

• Stern isn’t wasting any time: It's going to be 'hardware standard - functionality optional' as Ford is making its hands-free highway driving hardware, BlueCruise, standard on many Ford and Lincoln models, reflecting a broader industry shift towards subscription revenue.
  • On a call with reporters Monday, Peter Stern, Ford's new president of integrated services, said he was not concerned about consumer backlash to charging for software features.
• Customers can activate BlueCruise at purchase for three years at $2,100, post a free 90-day trial for $800 annually or $75 monthly. Select Lincoln models include four years of BlueCruise in the purchase price.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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