FORD’S CEO has revealed that the brand was forced to shut down some factories thanks to an industry-wide issue plaguing automakers.
Jim Farley opened up about the “day-to-day” struggle that has sometimes made car production impossible.
Ford CEO Jim Farley has announced that some Ford factories were forced to shut down[/caption]
Ford has been dealing with a serious ‘day to day’ struggle, according to the CEO[/caption]
The 63-year-old CEO made the admission on Friday, when he spoke about supply chain issues stemming from America’s tense trade relations with China.
Ford and other US auto brands are heavily reliant on the rival nation to get rare earth minerals, which are essential to car production.
American companies get about 90% of their rare earth supplies from China to build features like windshield wipers, seat belts, and speakers, CBS News reported.
So when President Donald Trump sparked a tit-for-tat trade war with the country that resulted in China implementing a 125% revenge tariff, automakers were left worried about the future.
Now, Farley has revealed that the trade issue has had devastating effects on the iconic American brand.
“It’s day to day,” Farley told Bloomberg TV.
“We have had to shut down factories. It’s hand-to-mouth right now.”
Farley didn’t clarify which factories were closed or for how long. The U.S. Sun has reached out to the brand for comment.
The brand shake-up came after Farley warned that Trump’s sweeping 10% global tariffs would “blow a hole” in the auto industry.
He feared his company would be most affected because it has already “maxed out” its footprint in the US, and has relied on overseas production.
“We’re the largest US producer. A lot of people don’t realize that Ford exports a lot of cars outside the US,” Farley told Bloomberg in February.
“We don’t have a lot of excess capacity.”
However, now Farley said he has renewed hope for the industry as the US struck a trade deal with China that left both countries pleased.
Last week, Trump declared that the trade war was over and called his relationship with China’s President Xi Jinping “excellent” after months of heated talks came to a close.
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump’s new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
- Coffee
- Tea
- Bananas
- Foreign-made cars
- Sneakers
- Furniture and other home goods
- Pharmaceuticals
- Video games
- Clothing
- Toys
- Washers and dryers
- Avocados
- Housing materials
Farley said Ford is working with China’s ministry of commerce to approve new trade plans “one at a time.”
“We’re educating the administration,” he told Bloomberg.
“We’re educating the Chinese leadership about how important these jobs in the Midwest that are dependent,” he said of China’s rare earth supply.
In other Ford news, the brand had to urgently recall over 1 million vehicles over a dangerous “glitch.”
Plus, a popular Ford dealership was shut down to make room for an auto shop chain that’s spreading its footprint across the country.
And one savvy gearhead restored a rare 1969 Ford muscle car after pulling it from a basement where it sat for 40 years.
