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Ford exec says automaker has reached its limit with latest UAW offer

Credit: Ford Motor Co.

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Ford Motor Co. noted on Thursday that it has reached the limit of what it can offer the United Auto Workers (UAW) in a new labor contract. Despite this, the automaker remains hopeful that an agreement can be reached.

Ford has pushed a new offer to the UAW that features a number of benefits. These include raises totaling 23% for hourly workers, the reinstatement of cost-of-living adjustments, and a $21 starting wage for temporary workers. The new offer would also allow new hires to reach top wages in three years. 

Kumar Galhotra, president of Ford Blue, the company’s internal combustion engine (ICE) division, stated on Thursday that Ford’s most recent offer is the most that it can do. If Ford improves the offer further, the automaker would no longer be competitive

“We have reached our limit. We’ve actually stretched ourselves to get to this point… We’re open to moving some money around within the deal that might fit the union’s needs better. But broadly speaking, from an overall cost of the deal perspective, yes, we’re there,” Galhotra said. 

The UAW has been on strike against Ford, General Motors (GM), and Stellantis since September 15, which means that the protests are closing in on one month. On Wednesday, the union expanded the strike to Ford’s Kentucky Truck Plant, the automaker’s largest and most profitable factory which produces the F-Series Super Duty, the Ford Expedition, and the Lincoln Navigator. 

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Galhotra noted that Ford officials were surprised by the UAW’s decision to strike the Kentucky Truck Plant, as noted in an Automotive News report. He also denied that Ford had told the UAW that it would be improving its proposal. He also stated that about 600 suppliers are connected to the Kentucky Truck Plant, so the UAW’s protest could end up having a ripple effect on about 100,000 workers.  

“Going further will hurt our ability to invest in the business like we need to invest… We know UAW leadership set out to wound Ford for months. But this goes way beyond just hitting Ford’s profits,” the executive said. 

Wells Fargo analyst Colin Langan noted that the UAW’s strike at Ford’s most profitable plant could hint that negotiations are approaching their conclusion. 

“UAW leadership likely needs to strike Ford’s most profitable plant to show the rank-and-file that they are extracting the most from the automaker. Consequently, we think this escalation is a sign that the UAW could be close to a contract proposal with Ford in the next 1-2 weeks,” the analyst said. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Xiaomi CEO congratulates Tesla on first FSD delivery: “We have to continue learning!”

Xiaomi has become one of Tesla’s strongest rivals in China.

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Credit: Tesla/X

Just days after unveiling the Xiaomi YU7, a vehicle that is considered as the Model Y’s strongest competitor yet, Xiaomi CEO Lei Jun gave a nod of respect to Tesla and its Full Self-Driving (FSD) program. 

In a post on Weibo, Lei Jun highlighted the remarkable nature of Tesla’s first autonomous delivery. He also acknowledged that Xiaomi still has much to learn in the electric vehicle industry.

Xiaomi CEO’s Nod of Respect

Lei Jun’s comments about Tesla’s FSD delivery were shared as a response to Tesla VP Grace Tao’s post about the recent feat. The Tesla VP shared several key aspects of the delivery, from the fact that there was no driver in the Model Y to the vehicle reaching over 70 mph as it drove to its owner. 

“For the first time in history, the vehicle was delivered to the owner by itself. There was no driver or remote control throughout the journey, and the maximum speed reached 115 kilometers per hour, and it arrived safely at the customer’s door. This is a brand new Model Y. Tesla always surpasses imagination with disruptive innovation. A new era, exciting!” Tao wrote in her post.

In his response, the Xiaomi CEO acknowledged Tesla’s incredible feat. “Tesla is indeed amazing, leading the industry trends in many areas, especially FSD. We still have to continue learning!” he wrote.

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Xiaomi’s Recent Tesla Competitor

The Xiaomi CEO’s comments show that Tesla’s projects and leadership garner a lot of respect in the global electric vehicle sector. While Tesla and Elon Musk tend to be media punching bags in the United States and Europe, the company and its CEO seem to be taken very seriously in China. This was despite China being the world’s most competitive electric vehicle market.

Xiaomi itself has become one of Tesla’s strongest rivals in China, with its first car, the SU7, bringing the fight to the Tesla Model 3. Its most recent vehicle, the YU7, could very well be the Model Y’s most legitimate rival yet, as it is more affordable, bigger, and more feature-laden than Tesla’s best-selling crossover. The YU7 has garnered quite a lot of attention, with Xiaomi receiving 200,000 firm orders for the vehicle within the first three minutes of its launch.

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Tesla silences FSD critics by posting full video of Model Y delivering itself to customer

When Elon Musk posted that the first Tesla had delivered itself to its owner, critics were quick to question his statement.

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Credit: Tesla/X

It is no secret that Tesla still has ardent critics today, many of whom remain convinced that the company and its leadership are lying about Full Self-Driving (FSD) and its capabilities. It was then no surprise that when Elon Musk announced that the first Tesla had successfully delivered itself to its owner, critics were quick to question the CEO’s statement.

Videos of the all-electric crossover’s solo drive to its owner soon silenced Tesla critics and their claims.

Tesla Posts FSD Video Proof—Twice

While Musk’s post on X about a Tesla delivering itself to a consumer was a notable update, his claims were not accompanied by any video. This was taken by some Tesla critics as a hint that the CEO’s claims were false, and that the feat probably did not happen. Musk, for his part, noted that Tesla would soon be posting a video of the self-driving car’s drive to its owner.

The electric vehicle community did not have to wait very long. Tesla later posted a video of its first autonomous vehicle delivery ever on X, much to the shock of social media users. As could be seen in the video, a Tesla Model Y was able to travel about 30 minutes on its own, from the end of Giga Texas’ production line to the home of its owner, several miles away. Tesla even posted the vehicle’s full 30-minute drive on its official X account later on. 

Critics Are Still Skeptical, But It’s Cope at this Point

Of course, Tesla skeptics remained unconvinced that the feat was legitimate, with some pointing out that the Model Y customer seems to have had an X account for years but never posted, at least until his car was delivered. Others also claimed that the whole setup seemed suspicious since the Model Y looked like it had manufacturer plates as it navigated Austin’s streets.

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These concerns, however, do not seem like very strong arguments, especially at this point. Based on the evidence, it seems like Tesla really has figured out autonomous driving, and its cars are now able to operate safely on real-world roads on their own. Many have also become silent in their criticisms of Tesla’s FSD feat, especially after the company posted the full video of the Model Y’s autonomous drive. Overall, Tesla critics may remain doubtful about the company and Musk’s claims, but these concerns seem to have become forced at best.

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Ford CEO favors Waymo’s LiDAR approach over Tesla’s vision-only self-driving

Farley stated that Waymo’s LiDAR-based approach made “more sense.”

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Credit: Jim Farley/X

Ford CEO Jim Farley shared some skepticism about Tesla’s camera-only approach to self-driving during a recent appearance at the Aspen Ideas Festival. When asked to compare Waymo and Tesla’s autonomous driving systems, Farley stated that Waymo’s LiDAR-based approach made “more sense,” citing safety, consumer trust, and the limitations of camera-based models.

Waymo’s LiDAR vs. Tesla’s Vision-Only Approach

Farley was speaking with author Walter Isaacson when he made his comments about Tesla and Waymo’s self-driving systems. As they were conversing about autonomous cars, Isaacson asked Farley which approach to self-driving he preferred.

“To us, Waymo,” Farley said, though he also stated that both Tesla and Waymo have “ made a lot of of progress” on self-driving, as noted in a Fortune report. He also confirmed that he has had conversations about the matter with Tesla CEO Elon Musk. Despite this, he said that Ford still considers LiDAR as a pivotal part of autonomous driving. 

“When you have a brand like Ford, when there’s a new technology, you have to be really careful. We really believe that LiDAR is mission critical… Where the camera will be completely blinded, the LiDAR system will see exactly what’s in front of you,” the Ford CEO stated. 

Tesla and Ford’s self-driving plans

Tesla recently launched a limited Robotaxi service in Austin, which uses autonomous cars with safety monitors in the front passenger seat. While controversial, Musk has maintained that Tesla’s vision-only approach will ultimately prove safer and more cost-effective in the long term. Tesla seems to be making headway towards this goal, with Musk stating recently that the first Model Y has been delivered autonomously to a customer in Austin.

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Ford, for his part, is not pursuing its own fully autonomous, urban-driving system anymore. Instead, the company is focusing on “high-speed, eyes-off” experiences like BlueCruise. Ford does plan to partner with a company that has achieved true autonomous driving in the future, as soon as the technology is available.

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