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Smell that fresh September air with us this morning as we talk about Ford’s moves to borrow and then spend. We also take a look at the newly refreshed Tesla Model 3, as well as Nissan’s continued play on the successful Heisman House campaign.
- Here are two stories that we can’t help but connect. Within a two week period, Ford has obtained a $4B line of credit and subsequently made the first official counteroffer to the UAW which entails an immediate 15% pay raise and increased benefits.
- According to an SEC filing, the credit agreement filed Aug. 17 and posted Aug. 22 as the company plans ahead for ‘uncertainties’
- Ford spokesman T.R. Reid told Automotive News. "This facility gives us additional working capital flexibility on top of our already strong liquidity position to manage through a variety of uncertainties in the present environment. Especially over the last several years, we've been deliberate in maintaining a strong cash and total liquidity position so we can run the business as it is today and invest in the business that we envision."
- Meanwhile, Ford has been the first of the Big 3 to offer a contract to the UAW that includes a 15% pay increase, raising workers' pay from an average of $78,000 in 2022 to $92,000 in the first year of the contract, including overtime and bonuses.
- UAW President Shawn Fain wasted no time, immediately criticizing Ford's offer, stating it "not only fails to meet our needs, it insults our very worth."
- Tesla has officially revealed the refreshed Model 3, codenamed “Project Highland,” in Europe, shortly after leaked photos surfaced online. The revamp includes a sleeker front-end design, an increase in screen space with a new rear display, and improved range. Although the design largely mirrors the current front-end modification removes a bulbous bump, making it appear more refined.
- Other improvements include a new rear 8-inch touchscreen, deleted stalks on the steering column, ventilated front seats controllable via Tesla's phone app, cushier rear seats, a 17-speaker sound system (up from 14), improved Bluetooth microphone performance, better Wi-Fi and Bluetooth connectivity, quieter interior, customizable interior ambient lighting, and a larger rear trunk.
- Nissan's "Heisman House" is in its 13th year and has been a fun marketing mix celebrating Heisman Trophy winners while showing off Nissan's vehicles. This year’s brings a number of deeper brand and influencer integration as the campaign now includes a virtual mansion tour on Zillow, TV ads, TikTok collabs, and special content and experiences accessed with a free NFT pass.
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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