UAW Updates Not Over, EVs Like Phones, Flying Ain’t Fancy Anymore

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We are coming to you from sunny Palm Beach Florida at The Pasch Group’s Modern Retailing Conference. The day brings news of the UAW votes not going perfectly so far, Foxconn asserting EVs that could be easier to make if they are made like phones, and airlines getting some brutal feedback on the frontlines.

Show Notes with links:

In a potential turn of events, Ford's Kentucky production workers voted against a proposed UAW contract while skilled trade workers voted for it, highlighting divisions within the workforce.

• 55% of Ford's Kentucky production workers voted against the tentative UAW contract, while 69% of skilled trades workers approved it, as reported by UAW Local 862.
• The vote casts doubt on the contract's ratification, previously expected to increase Ford's operational costs significantly as the union has not released the final, combined percentage of the vote
• So far, 71% of workers across Ford's facilities have voted for the UAW deal, but votes at key plants like Michigan's Dearborn Truck plant are pending.

Foxconn, known for iPhone manufacturing, is aiming to reshape EV manufacturing. Led by Jack Cheng, a Foxconn affiliate is working to implement an outsourcing model similar to that used for products like iPhones, potentially lowering EV production costs and impacting the global EV market.

• Cheng's strategy involves outsourcing EV production to reduce costs, contrasting with traditional automakers' preference for in-house design and assembly.
• Foxconn's expansion in the EV sector includes collaborations with Tesla and significant investments in Asia and the U.S.
• They already have facilities across Asia, India, and started to produce vehicles for Lordstown Motors in an Ohio plant before the company went bankrupt.
• Cheng points out the disparity between the price of an EV in China and the US and proposes he can help bridge the gap
  • “The world is wasting too much time tooling the same parts and losing money. It doesn’t make sense. What I learned in China in the last 20 years—I can replicate that.”

It seems flying isn’t getting more delightful. Complaints against airlines in the U.S. have surged to 24,965 in the first three months of 2023, with a notable increase in issues related to accessibility.

• In the first quarter of 2023, airline complaints in the U.S. rose by 88% compared to the same period in 2022.
• Complaints continued to increase in April and May, with a 32% and 49% rise, respectively.
• Disability-related complaints, such as problems with wheelchairs, nearly doubled to 636.
• The Department of Transportation is investigating several airlines for announcing unfeasible flight schedules and may impose fines.

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