Business

(WASHINGTON) — When Starbucks’ most famous former CEO, Howard Schultz, appears Wednesday before a Senate committee to face questioning from Bernie Sanders over the company’s response to a unionization push — including what a labor judge found to be union-busting practices — he’ll look to paint Starbucks as a “different kind of public company” that “balances profitability with social conscience.”

According to Schultz’s prepared testimony before the Senate Health, Education, Labor and Pensions Committee, reviewed by ABC News, he’ll argue that Starbucks has negotiated in “good faith” with employees as they’ve sought to unionize and obtain collective benefits.

“Starbucks respects the right of all partners to make their own decisions about union representation, and Starbucks is committed to engaging in good faith collective bargaining for each store that has a union. I embrace these commitments,” Schultz will say. “At the same time, our business requires speed and flexibility, both on the job and when operating more than 9,000 U.S. company-operated stores of every shape and size while addressing ever-changing customer preferences.”

Schultz is also set to defend Starbucks’ negotiation tactics and allege wrongdoing by union organizers — a view starkly at odds with the Seattle-based company’s pro-union employees.

“We have been arranging more than 350 bargaining sessions involving more than 200 sets of negotiations — each relating to a single store — and Starbucks representatives have been physically present at more than 85 sets of negotiations,” Schultz plans to say. “However, union representatives have improperly demanded multi-store negotiations, delayed or refused to attend meetings, and insisted on unlawful preconditions such as ‘virtual’ bargaining and participation by outside observers, among other things.”

Committee Chairman Sanders, I-Vt., has for months been working to haul Schultz before his committee to answer for Starbucks’ behavior related to a union push among its hundreds of thousands of employees.

“Despite being the face of the company, Starbucks partners are underpaid, forced to run perpetually understaffed stores, and don’t have consistent schedules they can rely on,” one Starbucks Workers Union email stated amid a “Red Cup Rebellion” in November.

Michelle Eisen, a worker from the first unionized Starbucks store in the U.S. at Elmwood Avenue in Buffalo, New York, wrote in the email that workers are “organizing for a voice on the job and a true seat at the table.”

In a previous statement announcing Schultz’s testimony on Wednesday, Sanders said Starbucks must do more for its workers.

“Let’s be clear. In America, workers have the constitutional right to organize unions and engage in collective bargaining to improve their wages and working conditions. Unfortunately Starbucks, under Mr. Schultz’s leadership, has done everything possible to prevent that from happening,” Sanders said in the statement. “Despite the fact that over 280 Starbucks coffee shops have successfully voted to form a union over the past year, Starbucks has refused to negotiate in good faith to sign a single first contract with their employees.”

During Wednesday’s hearing, Schultz will claim that much of his company’s problematic union conduct occurred before he was at the helm.

In his opening remarks, he plans to say that prior to his taking the helm as interim CEO last April, it was clear the company had “lost its way.”

Schultz served as Starbucks’ leader for more than 20 years across three stints, most recently stepping down last week.

He’ll also highlight changes he made at the company and social programs that Starbucks has extended to its partners and employees — including opportunities for stock ownership, the company’s college achievement plan, paid sick and parental leave and mental health programs.

“Our board and our leadership are in complete agreement that a direct relationship with our partners, where we have the flexibility to implement improvements quickly in wages and benefits and share success in the future, as we have in the past, is the right path forward for Starbucks, our partners and all company stakeholders,” he’ll say.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Social media app TikTok faces mounting bipartisan hostility in Washington D.C., where Biden administration officials and lawmakers are weighing a possible ban of the platform.

The app, which counts more than 150 million U.S. users each month but is owned by a China-based parent company, has faced growing scrutiny from government officials over fears that user data could fall into the possession of the Chinese government and the app could be weaponized by China to spread misinformation.

However, there is no evidence that TikTok has shared U.S. user data with the Chinese government or that the Chinese government has asked the app to do so, cybersecurity experts told ABC News.

Still, there’s reason to believe that the Chinese government could compel the company to share data on U.S. users or manipulate content on the app to forward a pro-China agenda, considering the nation’s authority over domestic companies and previous misleading statements made by TikTok on related issues, the experts added.

“We don’t have smoking-gun evidence,” Sarah Bauerle-Danzman, a professor who specializes in national security and business investment at Indiana University, told ABC News. “But we do know that if the [Chinese government] asks TikTok for any data, they would be compelled to provide it and we also probably wouldn’t know if they did.”

In a statement, TikTok cited Project Texas, an initiative that the company says keeps all U.S. user data on servers within the country.

“The whole point of Project Texas is to put TikTok U.S. user data and systems outside the reach or influence of any foreign government,” the company said in a statement to ABC News.

“Today, all new protected U.S. user data is stored exclusively in infrastructure in the United States, and today all access to that environment is managed exclusively by TikTok U.S. Data Security, a team led by Americans, in America,” the company added.

Here’s what we know and don’t know about the national security threat posed by TikTok.
No evidence that TikTok has shared US user data with the Chinese government

A key fear among lawmakers and other government officials is that TikTok could share sweeping data on U.S. users with the Chinese government or the Chinese government could force the platform to manipulate the content displayed to U.S.-based users.

But there is no evidence available that suggests TikTok has shared U.S. user data or altered content for U.S. users at the behest of the Chinese government, cybersecurity experts said.

“We actually lack any evidence that China is regularly or systematically collecting TikTok data,” Ahmed Ghappour, a professor at Boston University who focuses on computer security and criminal law, told ABC News.

“We lack any evidence that China has attempted to compel TikTok to manipulate user recommendations or user data in any way that would rise to the level of a national security threat,” he added.

TikTok CEO Shou Chew pointed to the lack of evidence during roughly five hours of testimony before a House committee on Thursday.

“I think a lot of risks that are pointed out are hypothetical and theoretical risks,” Chew responded. “I have not seen any evidence.”

“I’m eagerly awaiting discussions where we talk about evidence,” he added.

In fact, some House members critical of TikTok acknowledged the lack of evidence.

Rep. Dan Crenshaw, R-Texas, closed the proceeding with a line of questions focused on potential data sharing between TikTok and the Chinese government.

“Maybe you haven’t done it yet,” Crenshaw said, addressing Chew. “But my point is that you might have to.”

“If you want to know why Democrats and Republicans have come together on this,” Crenshaw added. “That’s why.”

Despite a lack of evidence for the national security threat posed by TikTok, it remains a legitimate theoretical concern, since China has shown a previous willingness to exploit user data and wields extensive authority over domestic companies, cybersecurity experts said.

“We know that China is very aggressive when it comes to spying,” James Lewis, a data security expert at the Center for Strategic and International Studies, told ABC News. “TikTok hasn’t been caught. The Chinese have been caught.”

For instance, in 2015, hackers working on behalf of China broke into the computer system of the Office of Personnel Management, a federal agency, compromising the data of as many as 4 million federal employees, the Washington Post reported.

Last month, the U.S. military shot down a Chinese spy balloon off the coast of South Carolina, ending days of travel that took the balloon across the continental United States.

U.S. Secretary of State Antony Blinken postponed a trip to Beijing just hours before he was set to depart. Blinken called the balloon a “clear violation” of U.S. sovereignty and international law. Days later, China accused the U.S. of flying spy balloons into its airspace without permission more than 10 times since the start of 2022 — an allegation that the U.S. denied.

Meanwhile, China’s use of digital surveillance on its own residents is well-documented, including the deployment of app-based data to spy on residents as part of its response to the COVID-19 pandemic.

Under Chinese law, the government could force TikTok-parent company ByteDance to turnover U.S. user data and manipulate content displayed on the app, cybersecurity experts said, noting that a lack of transparency makes it difficult to determine whether such a request has taken place.

“There wouldn’t be a paper trail necessarily that would be available to the public to see if this were to occur,” Bauerle-Danzman said.

TikTok has repeatedly denied sharing U.S. user data with the Chinese government or receiving a request along those lines.

However, the company has previously provided misleading information on related issues, some experts said.

TikTok engineers based in China gained access to intimate information on U.S. users between September 2021 and January 2022, even after a TikTok executive told the Senate in sworn testimony in October 2021 that a “world-renowned, US-based security team” determined which employees accessed such data, BuzzFeed reported in June.

“TikTok has a documented history of saying one thing and not always being accurate about that information,” Bauerle-Danzman said.

In response to concerns about U.S. user data, Chew has touted Project Texas, an ongoing effort that he says keeps all data on U.S. users within the country through a partnership with Oracle. During his testimony before the House, Chew said ByteDance remains capable of accessing user data but will no longer be able to do so after TikTok completes Project Texas.

Chew also said the company would welcome information security controls approved by a U.S. government monitor and enforced by a third party.

“Trust must be earned through action, not words,” Chew said.

ABC News’ Britt Clennett, Karson Yiu and Morgan Winsor contributed reporting.

Copyright © 2023, ABC Audio. All rights reserved.

(WASHINGTON) — The country’s top banking regulators faced a grilling from lawmakers Tuesday about who was responsible for the the failures of Silicon Valley Bank and Signature Bank.

The Senate Banking Committee heard testimony from officials at the Federal Reserve, Federal Deposit Insurance Corporation and the Treasury Department in its first hearing about the overnight collapses of the institutions.

“Did the Fed drop the ball because it didn’t see the risks that were building?” chairman Sherrod Brown, D-Ohio, asked as he kicked off the proceedings.

Sen. Tim Scott, R-S.C., argued “warning signs should have been flashing red and SVB should have stood out as it was: absolutely a problem child.”

“I hope to learn how the Federal Reserve could know about such risky practices for more than a year and failed to take definitive corrective action,” Scott added, pointing to testimony that supervisors flagged weaknesses as early as 2021. “By all accounts, our regulators appear to have been asleep at the wheel.”

Michael Barr, the Federal Reserve’s vice chair for supervision, pushed back that it was the job of bank managers to resolve issues stemming from their unique business models.

“The bank failed because its management failed to appropriately address clear interest rate risk and liquidity risk,” Barr said, going on to describe the actions of executives a “textbook case of bank mismanagement.”

Barr testified alongside Nellie Liang, the undersecretary for domestic finance at the Treasury Department, and Martin Gruenberg, who chairs the Federal Deposit Insurance Corporation.

Barr and Gruenberg signaled they have tools to reprimand bank executives — including civil money penalties, the payment of restitution or ban from the banking industry — pending the findings of investigations.

“We retain this authority even after a bank fails, and we stand ready to use this authority to the fullest extent based on the facts and circumstances,” Barr said.

President Joe Biden has called on Congress to make it easier to punish failed bank executives, including clawing back their compensation. Gruenberg stated Tuesday the FDIC didn’t have explicit authority to claw back pay but could go after executives in these other ways.

Biden also called for stricter banking rules to prevent more collapses.

Sen. Elizabeth Warren, D-Mass., on Tuesday hammered regulators on their commitment to tightening banking rules in the wake of these failures.

One after another, all three officials said they agreed banking rules should be strengthened.

“Each of you at this table has authority that you could exercise right now to strengthen rules for big banks and to ensure that our banking system and our economy are safer,” Warren said. “I urge you to use that authority, and I urge my colleagues here in Congress to do our part to protect American families and small businesses from yet another banking crisis.”

Barr and other officials faced questions about whether recent changes to regulation and supervision, including the Trump-era rollbacks of the Dodd Frank Act, contributed to the banks’ implosions.

“If it’s the regulator’s fault, it better be fixed. If it’s the regulation’s fault, it better be fixed,” Sen. Jon Tester, D-Mont., said. “If it’s something else, I hope there’s a report to this committee saying, ‘You know what guys, this can happen again unless this happens.'”

But Republicans, who are generally opposed to more regulation, questioned if bank regulators already had the appropriate tools but decided not to use them.

Idaho Sen. Mike Crapo, a chief architect of the 2018 legislation, said it still allowed the Fed to use its discretion to impose stricter standards on individual institutions.

“You are not using the tools in your toolbox,” said Alabama Sen. Katie Britt. “That is what people hate about Washington.”

Barr agreed the Federal Reserve is granted “substantial discretion” under that law, and that would be “one of the areas we’ll be looking at in our review.”

The Federal Reserve is looking into the bank failures and their practices, with reports expected by May 1. Barr vowed “transparency” and said the Federal Reserve welcomes independent investigations.

Regulators also defended the decisions they made in the days after the collapse, including the decision to protect all deposits, citing the risk of contagion for smaller and regional banks.

“The situation demanded a swift response. In the days that followed, the federal government took decisive action to strengthen public confidence in the U.S. banking system and to protect the U.S. economy,” Liang said.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Embattled crypto executive Sam Bankman-Fried now faces an additional criminal charge of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act, according to a superseding indictment unsealed Tuesday in the Southern District of New York.

The new charge brings to 13 the total number of counts Bankman-Fried faces, all stemming from alleged corruption in the operations of the crypto companies he founded: FTX and Alameda Research.

Bankman-Fried allegedly agreed to pay $40 million in cryptocurrency to foreign officials in China so they would unfreeze certain trading accounts on two of China’s largest crypto exchanges that belonged to Alameda, according to the superseding indictment.

The accounts had been frozen in 2021 by Chinese authorities as part of an investigation of a certain Alameda trading counterparty.

“After the accounts were frozen, Samuel Bankman-Fried, the defendant, and others operating at his direction, considered and tried numerous methods to unfreeze the accounts,” the indictment said. “After months of failed attempts to unfreeze the accounts, Samuel Bankman-Fried, the defendant, discussed with others and ultimately agreed to and directed a multi-million dollar bribe to seek to unfreeze the accounts.”

The alleged bribe payment was carried out in November 2021, at which time the accounts were unfrozen, prosecutors said, and Bankman-Fried resumed trading with the estimated $1 billion that remained in those accounts.

Bankman-Fried has pleaded not guilty to eight criminal charges. He has yet to enter a plea on this newest count and four others unsealed in a previous superseding indictment in late February.

Bankman-Fried has been free on a $250 million personal recognizance bond and under court orders to live with his parents. On Thursday, the judge overseeing the case will consider additional restrictions on Bankman-Fried’s bail after federal prosecutors raised concerns about his internet activities and his contact with current and former FTX employees.

According to a new court filing, Bankman-Fried’s parents have agreed to not allow him to use their phones and laptops and to install monitoring software on those devices that will photograph the device’s user every five minutes.

If the judge agrees, Bankman-Fried will not be allowed to contact current or former FTX and Alameda employees, use Signal or other encrypted messaging apps or use a VPN to access the internet.

He will be given a new laptop configured to allow access only to pre-approved websites, which are necessary for the preparation of the defense or for personal use, and do not pose a risk to the community.

Copyright © 2023, ABC Audio. All rights reserved.

(LOS ANGELES) — Taylor Swift fans will get their day in court on Monday, months after the botched release of tour tickets prompted widespread outcry.

A federal court in Los Angeles will hear arguments in a case brought by fans who allege that Live Nation — and subsidiary company Ticketmaster — violated antitrust and consumer protection laws.

The fall release of tickets for Swift’s “New Era” tour, her first in five years, prompted government scrutiny of antitrust laws, including a Senate hearing in January at which Live Nation president and Chief Financial Officer Joe Berchtold apologized for the fiasco.

The lawsuit, filed in December, claims that the 2010 merger of Live Nation and Ticketmaster illegally stamped out competition in live events ticketing, allowing the company to charge exorbitant prices for tickets.

In a court filing last month, Live Nation tried to end the court proceedings and force the dispute into private arbitration, claiming that ticket buyers had agreed on multiple occasions over the course of online shopping to resolve any claims through arbitration.

Live Nation and Ticketmaster did not immediately respond to ABC News’ request for comment.

“We are not going to just settle,” Julie Barfuss, a lead plaintiff, told ABC News’ Good Morning America. “We want to see some change.”

Fans of Swift are expected to hold a rally outside the courthouse on Monday.

Days after the tickets were released, in November, Swift spoke out about the difficulty faced by ticket purchasers.

“There are a multitude of reasons why people had such a hard time trying to get tickets and I’m trying to figure out how this situation can be improved going forward,” she said.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — First Citizens Bank will buy about $72 billion in assets from the failed Silicon Valley Bank, the Federal Deposit Insurance Corporation said.

Silicon Valley Bank, a regional lender with about $210 billion in assets, collapsed earlier this month. The bank had been the 16th largest bank in the country.

“Today’s transaction included the purchase of about $72 billion of Silicon Valley Bridge Bank, National Association’s assets at a discount of $16.5 billion,” FDIC officials said in a press release.

Seventeen former Silicon Valley Bank branches will open their doors on Monday as First Citizens Bank branches, the FDIC said.

About $90 billion of Silicon Valley Bank’s assets will remain in receivership with the FDIC, the regulator said.

ABC News’ Max Zahn contributed to this story.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — The banking crisis that erupted earlier this month elicited some predictions of a halt in interest rate hikes, since previous borrowing cost increases garnered blame for the financial distress.

Instead, the Federal Reserve on Wednesday imposed another hike, extending a yearlong blitz of rate increases that risks further banking woes and squeezes a different group: consumers in need of a loan.

The supercharged rate hikes have ballooned loan costs for mortgages, car loans and credit cards, weighing on the budgets of U.S. households or forcing them to delay buying big-ticket items.

However, some loan costs have ticked down slightly since the onset of the banking crisis in response to renewed recession fears, suggesting that relief for borrowers could arrive in the coming months but alongside a possible economic downturn, experts told ABC News.

“For ordinary families who need a new car or need to move, when the Fed hits the brakes hard and loan rates go up, that really constrains them,” Andrew Levin, an economics professor at Dartmouth College and a former Federal Reserve Board special adviser, told ABC News.

The Fed has put forward a string of borrowing cost increases as it tries to slash inflation by slowing the economy and choking off demand. That means borrowers face higher costs for everything from car loans to credit card debt to mortgages.

The average 30-year fixed-rate mortgage rate stands at 6.6%, a sharp increase from a year ago, when it registered at 4.6%, a Bankrate analysis found.

Each single percentage point increase in a mortgage rate can add thousands or tens of thousands in additional cost each year, depending on the price of a house, according to Rocket Mortgage.

Consumers tempted to offload heightened costs onto a credit card have encountered skyrocketing rate increases for that debt, too.

The average credit card interest rate offered in the U.S. over the last three months of 2022 stood at 21.6%, according to WalletHub, a jump from 18.2% a year prior.

“Higher interest rates mean you really can’t spend as much on big-ticket items,” Derek Horstmeyer, a finance professor at George Mason University’s School of Business, told ABC News. “There’s a direct connection.”

To be sure, the Fed has raised interest rates as part of an assault on sky-high inflation, a separate source of financial angst for U.S. households.

Inflation has fallen significantly from a summer peak, though it remains more than triple the Fed’s target of 2%.

“When you raise rates a lot it can feel like slamming the brakes and be pretty uncomfortable for passengers,” Levin said.

“On the other hand, families have been hit really hard in recent years by high inflation,” he added. “Passengers don’t want to go down a mountain at high speed either.”

While loan costs remain well above where they stood a year ago, the recent banking crisis has delivered a burst of unexpected relief, experts said.

Mortgage rates inched downward for the second week in a row, according to data released by Freddie Mac on Thursday.

The fall in mortgage rates owes to a quirk in the relationship between interest rates and home loan costs.

Mortgage rates track closely with rates for 10-year treasury bonds, which themselves correlate with expectations for the Fed’s benchmark interest rate over the next few years, Levin said.

If investors think interest rates will soon reverse downward, a drop in mortgage rates often precedes the interest rate pivot.

The financial distress has heightened recession fears, prompting investors to expect a significant lowering of interest rates over the next 12 to 18 months, which in turn has pushed down mortgage rates, Levin said.

“If that expectation continues, then the 10-year treasury rate will drop quite a bit,” Levin said. “Then it pulls down mortgage rates and that improves the affordability of families looking to move or first-time homebuyers looking to buy a house.”

Car loans will likely experience a trajectory similar to that of mortgage rates, though credit card costs should lag behind, Levin said.

“There might be a glimmer of hope,” he added.

Tempering such optimism, however, is the economic force that would push down interest rates: a recession.

“This crisis where we broke a few banks – that’s probably going to push us into a recession,” Horstmeyer said, noting that the adjoining job losses and decline in demand should bring down inflation and allow the Fed to ease interest rates.

“That kind of did the Fed’s job for it,” he added.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Gordon Moore, the co-founder and former chairman of tech giant Intel, died Friday at the age of 94, the company and the Gordon and Betty Moore Foundation announced.

A press release stated Moore died “surrounded by family” in Hawaii.

Moore and Robert Noyce founded Intel in 1968. Moore initially served as executive vice president until 1975, when he became president. In 1979, Moore was named chairman of the board and chief executive officer, positions he held until 1987, when he stepped down as CEO and continued as chairman.

Moore became chairman emeritus of Intel in 1997, stepping down in 2006.

“Those of us who have met and worked with Gordon will forever be inspired by his wisdom, humility and generosity,” said foundation president Harvey Fineberg in a statement. “Though he never aspired to be a household name, Gordon’s vision and his life’s work enabled the phenomenal innovation and technological developments that shape our everyday lives. Yet those historic achievements are only part of his legacy.”

Today, we lost a visionary.

Gordon Moore, thank you for everything. pic.twitter.com/bAiBAtmd9K

— Intel (@intel) March 25, 2023

Pat Gelsinger, the CEO of Intel, said, “Gordon Moore defined the technology industry through his insight and vision. He was instrumental in revealing the power of transistors, and inspired technologists and entrepreneurs across the decades.”

Prior to Intel’s founding, Moore and Noyce were involved in the founding of Fairchild Semiconductor, where they played central roles in the initial commercial production of diffused silicon transistors and later the world’s first commercially viable integrated circuits.

“The world lost a giant in Gordon Moore, who was one of Silicon Valley’s founding fathers and a true visionary who helped pave the way for the technological revolution,” Apple CEO Tim Cook tweeted. “All of us who followed owe him a debt of gratitude. May he rest in peace.”

Along with his wife of 72 years, Betty Irene Whitaker, he established the Gordon and Betty Moore Foundation, which has donated more than $5.1 billion to charitable causes since its founding in 2000, according to the foundation.

Moore received the National Medal of Technology from President George H.W. Bush in 1990, and the Presidential Medal of Freedom from President George W. Bush in 2002.

In addition to his wife, Moore is survived by his sons, Kenneth and Steven, and four grandchildren.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — United Nations Secretary-General Antonio Guterres said that the world is “on thin ice” and called for “climate action on all fronts” earlier this week while revealing the latest U.N. climate report.

The report said that greenhouse gas emissions continue to grow as chances of slowing climate change shrink — unless those emissions are cut drastically by the 2050s.

Ford CEO Jim Farley unveiled the company plans to reduce those emissions, including its new green manufacturing plant and the plant’s first vehicle, an electric truck codenamed Project T3. Farley joined “GMA3” to discuss the plans and what they mean for the future of manufacturing.

DEMARCO MORGAN: The U.N. secretary general says it will take a quantum leap and climate action to mitigate global warming. Can you tell us about the BlueOval City plant behind you and how it’s a game changer in your eyes?

JIM FARLEY: It’s a game changer for us. And good afternoon to you. Game changer for us, because we’re really starting to scale EVs. We’re number two in the U.S., and with this plant, we’re adding not only 6,000 American jobs, but, you know, hundreds and hundreds of thousands of capacity and the plant will be completely green. All the electrons that power the plant will be green electricity. So it’s not just a story about an electric vehicle. It’s actually a much bigger story about modernizing and decarbonizing our American manufacturing industrial system.

EVA PILGRIM: And today, Ford’s announcing the first vehicle to be built at that plant you’re at today, an electric vehicle codenamed Project T3. It’s a truck. What are we going to see that we haven’t seen yet in other EVs? And when will it roll out?

FARLEY: Well, you know, our Lightning is the best-selling electric pickup in the U.S., but this will be its successor and it will be fully software updatable. So over the air we’ll be able to change and improve the truck every day for our customers. And we think it’ll be the first technology we’re going to land where on a sunny day in the highway, you’ll be able to go to sleep in your Ford truck. So we don’t have autonomous features for commuters where you know you’re going to get the most precious thing in your life back, which is time.

MORGAN: And Jim, it is no secret that Ford has clearly embraced the electrical vehicle market as have others, and yet EVs have faced their share of problems. About 18 Ford F-150 Lightnings had to be recalled for a battery fire issue earlier this year. There have been Tesla battery fires, GM, BMW, Volvo, all had recalls due to EV fire risks. How can you assure people that your EVs are safe?

FARLEY: Well, I mean, I’m so proud of the Lightning team. They stopped production. We stopped the battery production. We did everything we needed to do. We found that fire. It happened at Ford, not in customer’s hands. We did exactly the right thing. Unlike other brands, we stopped the production. None of them got out in customer’s hands. And that’s exactly what we have to do to build a trusted brand on EV. We’re also going to diverse battery chemistry that has less risk, like the LMP battery plant we’re building in Michigan.

PILGRIM: We have to talk about money. EVs are expensive, more expensive than traditional cars. So if this is supposed to be better for our planet, how do you make these vehicles affordable so everyone who wants one can actually have one?

FARLEY: Yeah, great question. And that’s a big part of Ford, obviously. You know, we democratized affordable vehicles, so that’s a big part of our DNA. I think the first part is we have to design the vehicle differently to be a lot simpler. We have to scale to hundreds of thousands from tens of thousands. Like today, we’re going to have a more efficient distribution without inventory like we have today with our dealers. And we’re going to have to build it with less labor content. So we have to change everything, basically.

MORGAN: Jim, before you go, the U.N. climate report says we have to cut global emissions in half by 2030 and net-zero by 2050 to limit global warming to 1.5 degrees. Are you optimistic that the world can reach that goal? Is it possible?

FARLEY: It’s possible if companies like Ford do what we’ve got to do. It’s absolutely possible.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — One woman who said her family was in debt and one step away from financial disaster made a change in her spending at the grocery store that’s paying off big.

Becky Guiles, known as the “Freebie Lady” on social media, shared her money-saving method with ABC News’ Good Morning America, which she said helped her save $1,000 a month on her grocery bills.

“Since we’ve been doing this, we save about $1,000 a month, which equals out to about $12,000 in [the] entire year,” she said.

The mother of two told GMA she uses five easy steps, which she said can be remembered using the acronym “B.O.R.E.S.”: B stands for “budget,” O stands for “organized,” R is for “reuse,” E is for “eliminating waste,” and S stands for “simplify.”

“These are just basic principles that anybody can do, no matter where you are in life or what your family situation is like,” Guiles said. “B.O.R.E.S. is the method that I have used to cut our groceries down from $1,200 to $1,400 a month to only $400 a month.”

Guiles recommended putting aside $100 a month for food per person in the household.

“I go into my pantry and I take out everything that is expired or we’re not going to eat,” she said of the second letter in the acronym to get organized. “And that’ll just kind of give you a clear plate for what you have and what you need to get.”

She said that you can repurpose — or “reuse” — food, by turning things like chip crumbs into breading, stale bread into croutons and vegetable scraps into vegetable broth.

For her next letter of advice, “E,” Guiles said, “We try to eliminate waste as much as possible.”

“Every time you throw food away, you’re actually throwing money away,” she continued. “Once you start thinking about food like that, it totally changes your mindset.”

The final letter stands for simplify and Guiles suggested “the more you do it, the more you are going to save.”

Copyright © 2023, ABC Audio. All rights reserved.