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Steven Croley
Chief Policy Officer & General Counsel, Ford Motor Company

Mackinac Moments: Debbie Dingell, Ford's Steve Croley sit down with Devin

🎥 Oct 19, 2022 📺 Click On Detroit | Local 4 | WDIV ⏱ 15m 👁 353 views
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About Steven Croley

At the 2022 Mackinac Policy Conference, Steven Croley discussed Ford Motor Company's commitment to expanding its facilities in Michigan for both electric and internal combustion engine vehicles, describing the company's ongoing transformation. He emphasized the importance of bipartisan partnerships with federal, state, and local leaders to secure an attractive package for Ford, allowing the company to recommit to the state. Croley also advocated for passing the chips funding bill, calling it a matter of supply chain security and citing lessons from the pandemic about reducing dependence on other countries. Croley addressed Ford's efforts to hire talent from around the world, including Silicon Valley, and noted the company's work on a battery recycling plan to extract useful materials and reduce the need for mining. He stated that the company is taking nothing for granted and stressed the need for collaboration among government and partners to maintain Michigan's leadership in innovation and mobility.

Source: AI-verified profile updated from Steven Croley's recent appearances. Browse all interviews →

Transcript (22 segments)
I
Interviewer0:01
Welcome back to our post here on the porch of the Grand Hotel on Mackinac Island as we continue our coverage of this year's policy conference. Very happy to be joined now by Congresswoman Debbie Dingell, well known to all Flashpoint viewers, and Steve Crowely from Ford Motor Company. And Steve, let me start with you and this huge announcement that you've made today. These things have been in the works for a long, long time. Tell me a little bit about how all this came together.
S
Steven Croley0:27
Sure. Well, it's clear that we're committed to continuing the transformation of our company, and that will require expanding certain of our facilities, both to make electric vehicles and our iconic ICE combustion vehicles. We have had a partnership with the state of Michigan, longstanding, 119 years to be exact, and have found great partners in our federal partners, our local partners, and our state partners. The governor, the MEDC, and legislative leaders all came together in a bipartisan way that was emphasized by the governor and others this morning to put together an attractive package for Ford. That allows us to recommit to the state and several facilities. Obviously, as you suggest, there's a lot that goes into that. We're interested in the intangibles: who can we really partner with to allow us to double down? And that's what we've done. We're going to expand production at the Rouge for the F-150 Lightning, bring an all-new Ranger to Michigan and a Mustang coupe as well to the Michigan Assembly plants and Flat Rock facilities.
I
Interviewer1:46
The commitment to electrification hasn't become clear to people by now, but coming off the comments yesterday from my conversation with Pete Buttigieg here, I think a lot of people think that we're still pushing all this a little too quickly for — pick your reason — it's still too expensive for many people to afford, the grid may not be ready for it, on and on and on. Talk a little bit about your outlook on it.
S
Steven Croley2:09
Sure. Well, our outlook in the long term is that the world is going to move to electric vehicles. You're right, we need to get from here to there, and there are a number of important policy questions and economic questions associated with that, as you suggest: grid infrastructure, battery costs, consumer habits. But look, I think the world is changing faster than many expected. Certainly we've seen demand for our electric products — the F-150 Lightning, the Mach-E electrified Mustang — that has surpassed anyone's expectations, candidly. And we see that kind of consumer demand around the world, here in the United States for sure, but also in Europe and other places. So we'll continue to work with our government partners to make sure that the grid is ready, that we have the infrastructure in place. But I think consumers are champing at the bit for this new technology.
I
Interviewer3:00
I want you to address a little bit of the criticism that I know you hear: states falling all over each other, some describe as a race to the bottom, trying to outbid and outspend and feather the nest of companies that are already multi-gazillion-dollar companies. How do you address that criticism when you hear that?
S
Steven Croley3:23
Yeah, look, I mean, economic development is sort of the core responsibility of states and state leaders. I think this is no different than what states do: they try to attract companies. Michigan has done a great job of attracting Ford, historically speaking and recently as well. Other states, and frankly other countries, are interested in bringing economic development to their citizenry, to their jurisdictions, to attract jobs and commerce. And I think that's a healthy competition.
I
Interviewer3:54
Congresswoman, as you know, Michigan has taken its lumps over some projects that didn't come — Kentucky, Tennessee, most recently Stellantis deciding to move operations to Indiana. But the announcement today, the one earlier this year from General Motors — are we getting this figured out? What's the secret sauce here?
D
Debbie Dingell4:16
First of all, I think it's a very serious conversation that we have to have in Michigan, which I've been pretty blunt on, as you know. And we lost those packages, we lost those plants coming here because people look at the state. I've had this conversation with 20 different companies looking to locate a plant. When they go to other states, the red carpet is laid out, people come and welcome them, they have no idea if somebody's a Democrat or Republican, and it's the partnerships of the utility companies, the chamber of commerce, the welcoming environment. And I think quite frankly, Ford's announcement was a wake-up call for many people in the state when they didn't choose Michigan for two manufacturing facilities, which is why there was an all-out effort to attract GM. Everybody was part of that. The governor worked very hard on that, but I've talked to Mary Barra multiple times on that. I'm pleased by Ford's announcement today because they're my plants, they're my workers. Flat Rock has been very worried about what the future of that plant was going to be. Those workers, the UAW workers, they've been worried about their jobs. And at the Rouge plant, where the Lightning is being made, I said to the president, if you want EVs to be real, not fruit cars, come to Michigan, go to Dearborn, go to that Rouge plant and show people what an electric vehicle truck can do. And he did, and they've seen that. But Devin, I also want to say to you, you are right. I was very proud, I worked very hard with the environmentalists and the unions, the environmentalists hearing the union concerns. They stood at the White House, everybody together last August. But the three things we need to reach that 2030 goal... The companies know that for the environment, they've got to get there, they're committed. One, the vehicles need to be affordable. The tax incentive that has been there, that incentive until we get into more mass production and the cost come down, matters, and Congress has to renew it — we haven't done it. Two, we've got to invest in that R&D battery so that it's got the range that people have confidence in, and we've got to mine those minerals here. The next table I'm putting together with the environmentalists and the workers is that mine money that's got more people at it, but working that. And three, we do need to upgrade the power grid and build the infrastructure, all things we were trying to do with legislation that's become a little stonewalled. And I'm trying to work with the Joe Manchins of the world and my Republican friends to get there. We've got to do those things. The chips bill is also a big issue here. We need to get the COMPETES bill done. I know the secretary of commerce agrees with me, the president agrees with me. I know I have Republican friends and Democratic friends that think we need to get it done, and now the speaker is telling me hopefully by the Fourth of July, but there are others that want to play games with it. There are some things we should not be playing political games with, and when it comes to our economy and jobs in this country and our competitiveness, we should not be playing games with that. We need to bring chip production back to this country, we need to bring our supply chain back to this country, we need to get that bill done. The pandemic has taught us in many different ways we cannot be so dependent on other countries.
I
Interviewer7:47
See, you're shaking your head on the chips bill. Microchips are like cereal for you guys, right?
S
Steven Croley7:54
Yes. The congresswoman puts it perfectly. We need to get the chips funding bill done. I know she's working hard, and we're going to continue to push for that. It's a matter of supply chain security for us, and the pandemic has taught us all important lessons. We'll continue to advocate to bring within country, re-domesticate really, some of those capabilities.
I
Interviewer8:14
Let me ask you about a thing that comes up a lot. I have the Mustang Mach-E and it's the best car I've ever owned, absolutely love it. What I'm trying to figure out is eventually what's going to happen with that battery. Am I going to need to replace it many years down the road, and if I do, where is it going to go? This is a huge conundrum that maybe we started making these a little ahead of our plan for and figured we'd figure it out. But where are we right now on that?
S
Steven Croley8:46
It's a great question, an important issue. Yeah, eventually we'll want to recycle these batteries because at some point they will, like any battery, wear out over time, presumably before the life of the rest of your car. We are working with partners, new and old, including an important partner, Redwood Materials, to enter into a recycling plan for them so we can extract what's useful out of an old battery. That's important for all sorts of reasons: for economic reasons, for supply chain security reasons — the more we can recycle, the less mining we need to do. So that issue is very much at the top of our list of issues to work through as we continue to become electrified.
I
Interviewer9:30
I also mentioned another one: range. What do you see, what are you seeing that maybe the rest of us haven't gotten a glimpse of yet toward what range capacity really can become?
S
Steven Croley9:42
Yes, well, there is a spectrum of different ranges. What it will depend on ultimately is how much confidence consumers have over the charging infrastructure. Before that infrastructure is prolific, people are talking about and thinking about range. I have a Mach-E as well, and we kind of calculate, all right, where can we get to on our next trip? That kind of calculation will be less and less necessary over time. Consumers will really choose for themselves: do they want to pay for a slightly more expensive battery with a longer range, or will they instead make the compromise for a different kind of battery that might be more affordable with a shorter range, because now they can hook up at work, at home, in between? So the market is going to sort that issue out. We just need to continue to work for the infrastructure to get from here to there.
I
Interviewer10:33
Congresswoman, I want to go back to the jobs that you just talked about, in your district. That's a lot, but they're also — the governor took pains to point out there were UAW jobs. Talk a little bit about the outlook for union jobs in the manufacturing world, because the narrative, as you know, 10 to 15 years ago was that all those jobs are heading to places where nobody's expecting to join a union.
D
Debbie Dingell11:02
Well, I think we need to understand what unions do for all of us in this country, and how all of us have benefited from unions. I think if you talk to the OEMs, they'll talk about what an important partner the UAW is for them in terms of training, apprenticeships, and making sure you've got a skilled workforce. But I just would like to point out to everybody that we take things for granted: vacations, holidays, health insurance, sick days. Even in a school, the teacher-to-student ratio, the patient-to-nurse ratio — all have been negotiated by a union. All of us benefit from what unions have negotiated. I think the UAW is one of the organizations that helped create the middle class in this country. They want to keep working men and women strong. I'm obviously a strong union supporter, the president is a strong union supporter. And I think we're showing that we can compete with other states for those jobs.
I
Interviewer12:00
And you took pains today to talk about the multiplier effect, which I'm not sure everybody fully can grasp when they hear two to three thousand jobs, and then what that — talk a little bit about that.
D
Debbie Dingell12:14
Sure. So if you start from 6,200 new union manufacturing jobs, or 3,200 here in Michigan, that adds to the economic ecosystem. That means those workers will have more money to spend, but it also means as we're building these additional vehicles, we'll have increased needs from our suppliers, for professional services, for different kinds of vendors. So we're stimulating the economy quite literally. Every dollar we invest or every worker we hire will multiply itself. There are different formulas for calculating those multipliers, but what it means is, given one worker, do we get four jobs or ten jobs?
I
Interviewer12:56
Last thing I want you both to address is: there's been a lot of talk and a little bit of hand-wringing over whether Michigan has already been falling behind a little bit in the EV race. We're competing with Silicon Valley, competing with lots of different startups, there's a lot of exciting things happening out there. But talk about Michigan's positioning. Let me start with you, Steve. Obviously you believe that hub that's going on in Corktown is a big part of where we expect that information and technology to come from. But should we worry about Michigan's positioning right now in this massively important race?
S
Steven Croley13:34
Yes. We will continue to look forward to working with our partners in state government and working with the state of Michigan. The Corktown facility which you mentioned is important, but also what we're doing at the train station, the Central Station — that will be a major hub for connectivity, for electrification. We'll bring in partners into that facility from California, including Silicon Valley. And even as I speak, we are hiring new people from around the world, including Silicon Valley, who are excited about coming to Ford and coming to work for this Michigan company. Because the race is on, and Michigan is very much in the competition for sure.
D
Debbie Dingell14:17
Look, we have to be intentional. Nobody's going to hand this to us on a silver platter. A lot of people think let's just assume it's our birthright. One of my major priorities is making sure we put the world on wheels. We put the world on wheels, and I intend that Michigan is going to stay at the forefront of innovation and technology, and we're going to be the world leader in mobility. But all of us need to understand that that requires us to be very intentional in our work. We can take nothing for granted, we can take nobody for granted. We all have to work together. The governor is a leader on it, but the legislature, the federal, state, local levels of government have to partner with many different partners throughout this state, or we're going to lose that leadership role. And I don't intend to let that happen.
I
Interviewer15:07
I didn't expect you would. Congresswoman Debbie Dingell, Steve Crowely, thanks so much for the conversation. Really great to have you both here as we continue our conversations from the Mackinac Policy Conference from the Grand Hotel.