Bill Ford Jr.: Michigan is ‘headed in wrong direction’

Speaking to business executives in Grand Rapids, Ford executive chair Bill Ford Jr. said Michigan is headed in the wrong direction
Ford Motor Co., facing a wave of competition, is focusing on its core US market
Product expansions and hiring of US suppliers could help Michigan, Ford says

GRAND RAPIDS — The global auto industry is becoming more regional, a move that could help bolster Michigan’s sagging economy, Ford Motor Co.’s executive chair said Monday during a visit to west Michigan.

Saturation among Asian automakers, upheaval in European markets and pressures from state-subsidized Chinese manufacturers are prompting US automakers to more firmly stake their claim to their home markets, Bill Ford Jr. told the Economic Club of Grand Rapids.

As Ford Motor Co. confronts changes in market forces — including tariffs — Michigan and the US will benefit, Ford said.

“If we do this right, (we’ll gain) a much stronger American supply base,” Ford said to the crowd of about 400 at the JW Marriott in downtown Grand Rapids.

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That’s necessary, Ford said, because Michigan needs to improve.

“I’m trying to help get the state business friendly again, because we’re headed in the wrong direction,” said Ford, who has endorsed independent Mike Duggan in this year’s governor race.

Population losses, education metrics and other measures of success lag the rest of the US, as reported by Business Leaders for Michigan and other business and nonprofit organizations have flagged this year.

“This should be the greatest state in the country,” said Ford, noting that Michigan has abundant fresh water, engineers and industrial know-how.

Ford appeared with his daughter, Alexandra Ford English, who is on the board of Ford Motor Co. Among the highlights of the appearance:

The company is leaning on AI and robotics

Ford software has changed the technology experience among drivers, going back to the SYNC systems it pioneered starting in the early 2000s.

Now, technology is leapfrogging ahead with artificial intelligence applications, Ford English said.

AI is already used in Ford vehicles to gauge maintenance needs, she said. It’s also used extensively behind the scenes, she added, including steps in designing, engineering and manufacturing.

More is bound to come soon, Ford English said.

“We have AI throughout our plants and our offices today,” she said. “I believe it’s so critical for our future.”

New focus on American auto suppliers

President Donald Trump, Ford said, “really has voiced what some of us have been trying to get people to listen to for the last 20 years, which is, we are losing our industrial base.”

The administration has prioritized rebuilding it, Ford said. That’s taking place as the industry changes quickly and “in a very volatile political landscape,” Ford said.

“You could argue the tactics they’re using to get it done,” he said, hinting at criticism over how tariffs were announced and adding that Ford Motor Co. won’t weigh in on the politics.

The end result, Ford said, will be more manufacturing in the US. That move likely will include many of the west Michigan businesses attending Monday’s event.

“We need a much stronger American supply chain,” Ford said.

Divisive politics are a concern

Unity is lacking in the state and nation, Ford said, as the political divide becomes culturally ingrained. He told a story about how former Reps. John Dingell, a Democrat, and Republican Fred Upton felt they could not be spotted dining together with Ford despite their strong friendship.

“It really makes me very sad,” Ford said about the divide, “when I see the metrics that we measure our state by falling and the fact that there’s almost no dialogue.”

Ford’s customers come from all political leanings, both of the automaker’s leaders said on Monday, and the automaker won’t take a side.

“We have to get back to bipartisanship,” Ford said.

Ford products could further expand beyond autos

The defense sector “is another way we could serve the country today,” Ford said, without offering details.

However, he added that “there aren’t a lot of companies that can make a lot of complex things” and as a result, Ford fields requests for more defense production.

Adding defense work would follow other production expansion: The company plans to launch manufacturing of energy storage systems after it opens BlueOval Battery Park in Marshall this year.

The factory, initiated for electric vehicle batteries, will produce fewer than originally planned as Ford and other automakers slow their electrification plans.

Ford Motor Co. [NYSE: F] is valued at $49.7 billion, making it among the largest companies in Michigan.

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