Ford announced a major managing reshuffle this week after the United Auto Workers closed down one of the company’s most profitable plants.
Combustion vehicle unit chief Kumar Galhotra was promoted to chief operating officer. He previously worked in the unit focused on gas and hybrid cars and now will have more control over the company’s industrial focus, such as with electric vehicle production.
“These moves will drive clarity and simplicity across Ford so we can significantly ramp up our capabilities and combine them with businesses that are focused on the needs of different customers,” Ford CEO Jim Farley said of the change.
The shakeup comes after the UAW struck Ford’s Louisville, Kentucky, plant last week.
The walkout at the factory came as a shock to Ford’s management and marked a significant change in the union’s strategy during the strike. At the time, Ford called the move irresponsible and not productive for negotiations.
In the aftermath of the walkout at the Louisville plant, Mr. Galhortra said Ford was at the limit of what it could offer the union and that anything further would hurt its competitiveness.
According to recent reports, Ford has offered the union double-digit wage increases and significant improvements to benefits. UAW leadership has remained adamant that their members deserve more.