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Ford says it is ‘at the limit’ with UAW contract offer

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Ford says it is ‘at the limit’ with UAW contract offer


DETROIT/WASHINGTON, Oct 12 (Reuters) – A senior Ford executive said Thursday the automaker is “at the limit” of what it can spend on higher wages and benefits for the United Auto Workers, and warned the union’s strike at the company’s most profitable factory could harm workers and slash profits.

“We have been very clear that we are at the limit,” Kumar Galhotra, head of Ford’s combustion vehicle unit, said during a conference call Thursday. “We stretched to get to this point. Going further will hurt our ability to invest in the business.”

Ford is open to reallocating money within its current offer in further bargaining with the union to secure an agreement, Galhotra said. Ford is also working with the UAW on a way to bring workers at joint-venture electric vehicle battery plants into the UAW-Ford agreement, he said.

UAW President Shawn Fain on Wednesday ordered a strike at Ford’s Kentucky Truck factory after Ford negotiators did not present a richer contract proposal.

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UAW negotiators turned their attention on Thursday to talks with Chrysler parent Stellantis (STLAM.MI), union President Shawn Fain said, confirming a Reuters report.

“Here’s to hoping talks at Stellantis today are more productive than Ford yesterday,” Fain wrote on social media. Stellantis did not immediately comment.

The standoff between the UAW and Ford could soon affect thousands of workers who are not among the nearly 34,000 Detroit Three workers Fain has ordered to walk off the job since Sept. 15.

About 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, said Ford manufacturing vice president Bryce Currie.

Already, 13,000 workers at Ford suppliers have been furloughed because of earlier UAW walkouts at two Ford assembly plants, Ford supply chain chief Liz Door said. The shutdown of Kentucky Truck, Ford’s largest factory, could push a fragile supply chain “toward collapse,” she said.

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Fain and other UAW officials have countered that Ford, General Motors and Stellantis can afford to increase pay for UAW workers beyond the 20% to 23% they have offered, end lower wage tiers for lower seniority and temporary workers, and restore defined benefit pensions lost in 2007 if they rein in share buybacks and cut excessive executive pay.

SHARP ESCALATION

The walkout at Kentucky Truck was a sharp escalation in the UAW’s slow-building campaign of strikes, and sent a warning to Stellantis and General Motors (GM.N), whose wage and benefits offers fall short of Ford’s, based on summaries the automakers and the UAW have released.

Fain has scheduled a video address for Friday at 10 a.m. EDT (1400 GMT). In past weeks, Fain has used Friday addresses to order additional walkouts, or announce progress in bargaining.

Fain has yet to tip his hand as to what actions he will take Friday, if any.

Some analysts saw Fain’s decision to shut down Ford’s Kentucky Truck plant, which builds Super Duty pickups and Lincoln Navigator SUVs, as a sign that the endgame could be starting in the nearly month-long round of coordinated walkouts at the Detroit Three.

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“Pressure was always needed to force a deal,” Evercore ISI analyst Chris McNally wrote in a note on Thursday.

White House press secretary Karine Jean-Pierre said the administration was closely monitoring the economic impact of the widening strike and still hoped both sides will reach a “win-win agreement.”

Last Friday, Fain said if needed, the UAW would strike the GM assembly plant in Arlington, Texas, that builds Cadillac Escalade, Chevy Suburban and other large, high-priced SUVs. GM’s Flint, Michigan, heavy-duty truck assembly plant is another potential strike target.

High-profit targets at Stellantis include the automaker’s Ram pickup truck factories in Sterling Heights and Warren, Michigan, as well as two Jeep SUV factories in Detroit.

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“This puts everybody on notice,” said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. “If they haven’t brought anything new to the table since last week, GM and Stellantis should be worried.”

Reuters Graphics Reuters Graphics

Analysts at Wells Fargo estimated that Ford will lose about $150 million per week in core profit from the Kentucky plant strike.

Ford officials said on Thursday that cutting a deal that does not allow the company to survive makes no sense and that striking the Kentucky truck plant would also hurt the UAW’s profit-sharing checks.

In a sign of the strike’s expanding impact, Delta Air Lines (DAL.N) said on Thursday it is feeling a pinch from the automotive and entertainment labor strikes. Delta President Glen Hauenstein said the UAW strike has curtailed a “significant” amount of business in Detroit.

Automakers have more than doubled initial wage hike offers, agreed to raise wages along with inflation and improved pay for temporary workers, but the union wants higher wages still, the abolishment of a two-tier wage system and the expansion of unions to battery plants.

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The UAW has room to expand its walkouts and increase the pressure on the Detroit Three to offer bigger wage gains, richer retirement packages and more assurances that new electric vehicle battery plants will be unionized.

Even with 8,700 workers at Ford’s Kentucky Truck plant now on strike, less than a quarter of the 150,000 UAW workers at the Detroit Three automakers are now on strike. However, thousands more have been furloughed from jobs at operations that are not on strike because automakers said the walkouts made their work unnecessary.

Ford said on Thursday that it already had 13,000 layoffs at its suppliers and that 4,600 of its own workers could be laid off at other plants.

Ford warned that workers at a dozen other factories could be sent home because of the truck plant walkout. Officials said new layoffs stemming from the Kentucky strike could begin in the coming days.

Its Kentucky truck plant, the company’s most profitable operation, generates $25 billion in annual sales, about a sixth of Ford’s global automotive revenue.

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Fain and other UAW officials called a meeting with Ford at on Wednesday evening and demanded a new offer, which Ford did not have, a Ford official said.

“You just lost Kentucky Truck,” Fain said, according to the Ford official and a union source, speaking on condition of anonymity because the talks are not public.

Ford said the decision was “grossly irresponsible.”

Fain has said his aim is to keep the automakers off-balance by taking targeted action rather than a full strike.

The Detroit automakers will report third-quarter financial results between Oct. 24 and Oct. 31, and the UAW could use what are expected to be robust profits to press their case for a richer contract.

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Before Wednesday’s Ford announcement, the union had ordered walkouts at five assembly plants, including two Ford assembly plants, at the three companies and 38 parts depots operated by GM and Stellantis.

Reporting by Joe White in Detroit, Abhirup Roy in San Francisco and David Shepardson in Washington
Additional reporting by Priyamvada C in Bengaluru
Editing by Peter Henderson, Ben Klayman, Nick Zieminski and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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Joe White is a global automotive correspondent for Reuters, based in Detroit. Joe covers a wide range of auto and transport industry subjects, writes The Auto File, a three-times weekly newsletter about the global auto industry. Joe joined Reuters in January 2015 as the transportation editor leading coverage of planes, trains and automobiles, and later became global automotive editor. Previously, he served as the global automotive editor of the Wall Street Journal, where he oversaw coverage of the auto industry and ran the Detroit bureau. Joe is co-author (with Paul Ingrassia) of Comeback: The Fall and Rise of the American Automobile Industry, and he and Paul shared the Pulitzer Prize for beat reporting in 1993.



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Kentucky

Kentucky Oaks 2024 post positions are set. See who’s favored, odds at Churchill Downs

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Kentucky Oaks 2024 post positions are set. See who’s favored, odds at Churchill Downs


Post positions for the 2024 Kentucky Oaks are set; with Tarifa established as the favorite in the $1.5 million, Grade 1 stakes race during Saturday’s draw at Churchill Downs.

Trained by Brad Cox, Tarifa drew the No. 8 spot and leads the pack with 7-2 morning-line odds. Other top contenders include Leslie’s Rose (4-1), who drew the No. 14 spot, and Just F Y I (9-2), who drew the No. 13 spot.

A 1 1/8-mile race for 3-year-old fillies, the Oaks has an approximate post time of 5:51 p.m. Friday and will be the 11th of 13 races that day.

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It will air on USA Network. It’s also available to stream via NBCSports.com, the NBC Sports app and Peacock.

Here’s a look at the post position draw with each filly’s trainer, jockey and morning-line odds. Click a horse’s name to learn more about her:

Kentucky Oaks 2024 post position, horse, trainer, jockey, odds

  1. Tapit Jenallie, Eddie Milligan Jr., Emmanuel Esquivel, 30-1
  2. Gin Gin, Brad Cox, Florent Geroux, 30-1
  3. Where’s My Ring, Val Brinkerhoff, Jose Lezcano, 15-1
  4. Regulatory Risk, Chad Brown, Jose Ortiz, 20-1
  5. Thorpedo Anna, Kenny McPeek, Brian Hernandez Jr., 5-1
  6. Lemon Muffin, D. Wayne Lukas, Keith Asmussen, 30-1
  7. Fiona’s Magic, Michael Yates, Luis Saez, 30-1
  8. Tarifa, Brad Cox, Flavien Prat, 7-2
  9. Everland, Eric Foster, Abel Cedillo, 30-1
  10. Into Champagne, Ian Wilkes, Julien Leparoux, 30-1
  11. Ways and Means, Chad Brown, Tyler Gaffalione, 5-1
  12. Power Squeeze, Jorge Delgado, Daniel Centeno, 12-1
  13. Just F Y I, Bill Mott, Junior Alvarado, 9-2
  14. Leslie’s Rose, Todd Pletcher, Irad Ortiz Jr., 4-1

Also eligible

15. Our Pretty Woman, Steve Asmussen, Joel Rosario

16. Candied, Todd Pletcher, Luis Saez

This story will be updated.

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Reach Louisville men’s basketball reporter Brooks Holton at bholton@gannett.com and follow him on Twitter at @brooksHolton.



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Jaxson Robinson enters transfer portal and considering Kentucky

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Jaxson Robinson enters transfer portal and considering Kentucky


Is Jaxson Robinson finally happening?

When Mark Pope first came to Kentucky, the immediate buzz was that BYU Cougars star Jaxson Robinson would eventually follow him to Lexington.

Now, Robinson is finally entering the transfer portal, according to ESPN’s Jonathan Givony, who adds that the talented guard is considering a move to Kentucky (shocked face).

However, Robinson made it clear he will consider other programs, including a return to BYU.

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“Although Coach Pope and I have a great relationship and had an amazing season this past year, it is important that I still explore what the best fit for me is,” Robinson said. “My recruitment is still 100% open.”

Coincidentally or not, new Kentucky assistant coach Cody Fueger tweeted this right before the news broke.

Robinson previously entered the NBA Draft this week.

This past season, Robinson averaged 14.2 points (42.6% shooting and 35.4% on 3-pointers), 2.5 rebounds, and 1.3 assists per game. He began his career at Texas A&M, transferred to Arkansas, then made his way to BYU, where he’s spent the last two seasons.

This is a big one, but my guess is Robinson won’t make a final decision for several weeks as he goes through the pre-draft process.

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Cameron Boozer says Kentucky is 'completely different program' under Mark Pope

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Cameron Boozer says Kentucky is 'completely different program' under Mark Pope


Cameron Boozer was at the top of the priority list for Kentucky under John Calipari, the Wildcats a sneaky darkhorse to land the nation’s best frontcourt recruit in 2025. Miami (FL) had the hometown edge while the five-star prospect’s father, Carlos Boozer, is a Duke legend — the Blue Devils will be in the conversation until the end no matter what. That’s been the core three, plus Florida and UNC as other schools making a push.

And then Coach Cal left in the middle of the night to Arkansas, shaking up the basketball world at every level.

John Calipari’s move to Arkansas

“It was interesting, for sure. I wasn’t really expecting it,” Boozer told KSR. “When I first saw it, I was like, ‘Oh, that’s weird.’ I don’t think anyone was really expecting it, I was really surprised by it. I wasn’t expecting him to leave Kentucky.”

Instead of pitching Lexington and the larger-than-life brand that is Kentucky basketball, Calipari is now pitching Fayetteville and the Razorbacks. To say it’s an adjustment would be an understatement, Boozer trying to make sense of it all while hearing out the Hall of Fame coach in his transition from blue to red.

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To make it a little easier on his prized recruit, Coach Cal is comparing his move to a high-profile business relocating — same product, different home.

“Cal called me the other day, said he’s the same coach, just moving headquarters,” the five-star forward said. “He said he wants to recruit us still and that he’s still very interested in us. He said it’s like when a big company moves to a new location, it’s the same thing he did.”

Where do things stand with Kentucky?

Boozer hinted that a visit to Arkansas could be in the works and things are going well with the Razorbacks in early conversations. As for Kentucky and where things stand under new head coach Mark Pope? Well, it’s complicated.

Has the No. 2 overall recruit heard from the Wildcats since the change?

“No,” he said bluntly.

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What does he know about the new staff in Lexington?

“Nothing,” Boozer added.

As for his thoughts on the program itself post-Calipari, the five-star forward admitted the new Arkansas coach is really all he knows about Kentucky — he is just 16 years old, after all. Boozer was still in diapers when Coach Cal arrived in Lexington, so his entire life has been John Wall, Anthony Davis, Karl-Anthony Towns, De’Aaron Fox and Shai Gilgeous-Alexander.

So if Pope and his staff were to express interest, it’d be an entirely different conversation and pitch. Not that he wouldn’t be receptive to the new-look Wildcats, but change is change.

“I think it’s a completely different program. I think a big part of all their success recently and the players they’ve gotten is because of Coach Cal,” Boozer said. “If (Kentucky) were to reach out, it would be a whole different recruiting process.”

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Miami, Duke, UNC and Florida among schools pushing

Again, that works on Kentucky’s side, too. Pope has been relentless in his pursuit of filling out a coaching staff and debut roster, one he expects to compete at a championship level in year one. High school recruiting is simply on the back burner for now — as it should be, at least for a few weeks. Nothing personal either direction.

As for the other schools involved, Boozer again singled out Miami (FL), Duke, Florida and UNC as the schools prioritizing him most at this point.

We’ll start with the hometown Hurricanes.

“They’ve been recruiting me since freshman year,” he said. “They’ve been saying the same stuff (as other schools), that they’re interested in us and they really want us there.”

Keeping it in the state, the five-star forward’s AAU teammate and four-star SG Alex Lloyd just committed to Florida. Could he join him in Gainesville?

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“(Alex) said it’s a great school and he’s excited to go,” Boozer added. “It’s a great opportunity for him. Coach (Todd) Golden is a great coach, as well, so I’m glad my dog is committed there.”

What about Duke and the opportunity to be a legacy star in Durham?

“They came to visit us,” he said of their push for him and his twin brother, Cayden. “They’ve been saying the same stuff, that they are super interested in us. They talked about some stuff with the portal, some stuff about their players. We just have good communication.”

Could he play for his father’s arch rival in Chapel Hill? The Tar Heels are making a push.

“They offered me a little while back, but they’ve been active ever since they offered me,” Boozer said. “I think they offered me last year during EYBL. They want to get us up for a visit and that they’re super interested in us.”

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Nailing down a decision

His brother is a blue-chip prospect in his own right, Cayden Boozer ranked No. 16 overall and No. 3 among point guards. It’s assumed the twins will play together in college, but is that a guarantee? That remains up in the air, their decisions made separately based on their own fits and needs.

“We could go together, we could not,” the standout forward said. “At the of the day, we are doing our own process. So it’s about what school is right for us. It might be different for me, or might be the same for both of us.”

When could we see a final decision for the No. 2 overall prospect in the rising senior class?

“Probably sometime around the start of the next school season,” he said.

It’s clear Kentucky has some work to do if it wants to jump back in the race under Pope.

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