Ford Compensates This Technician $160,000 Annually, So Why Is It Struggling to Fill 5,000 Positions? | Carscoops

      One skilled technician from Ohio makes six figures, but most mechanics never reach that level, as flat-rate pay penalizes injuries, burnout, and those who can't work quickly.

      A Ford master technician reportedly earned $160,000 last year, according to the WSJ.

      Flat-rate pay incentivizes speed and proficiency rather than the number of hours worked.

      Ford CEO Jim Farley stated that the company is having difficulty filling 5,000 technician positions that offer $120,000 salaries.

      Many continue to perceive auto technicians as undercompensated workers, often covered in grease while struggling to get by on hourly pay. Hence, the notion that a dealership technician for a non-luxury brand could earn $160,000 annually seems improbable. However, that's the reality for those who are skilled, efficient, and determined to stay in their roles over the long term.

      Ted Hummel, a senior master technician at Klaben Ford, located in Kent, Ohio, focuses on transmissions, the heavy and unwieldy components that many technicians would rather avoid. Ford estimates that replacing a transmission should take roughly 10 hours, but Hummel's extensive experience allows him to complete the task in about half that time, as he mentioned to the Wall Street Journal.

      “I wish we could clone Ted,” his supervisor told the WSJ. Ford CEO Jim Farley also expressed concern about the company's struggle to recruit enough qualified technicians to fill 5,000 openings for positions paying over $120,000, which typically require around five years of experience to master.

      “We are facing a serious issue in our country,” Farley remarked. “A bay equipped with a lift and tools, yet there's no one to operate it.”

      Understanding How Flat Rate Benefits the Quick and Bold

      The system that enables Hummel to earn a substantial income is called flat rate, which functions similarly to piecework in the automotive industry. If a technician completes a job faster than the time allocated by the manual, they still receive the full payment. This can lead to significantly increased earnings if one maintains such efficiency consistently. However, only a small percentage of technicians ever achieve this level due to the lengthy, costly, and physically demanding journey required to get there.

      Hummel began his career earning less than $10 an hour after incurring $30,000 in college tuition and additional expenses for tools that dealerships typically expect technicians to provide. A single specialized torque wrench can cost $800. According to the WSJ, it took him ten years to reach a six-figure income, and that was without any injuries impeding his progress.

      “They always promoted back then that you could earn six figures,” he recalled. “But while I was doing it, I thought to myself, ‘That’s not happening.’ It took a considerable amount of time.”

      The Emerging Workforce

      In addition to his speed, a significant portion of Hummel’s earnings now comes from mentoring younger technicians, a task for which the dealership compensates him extra. Ford has indicated that there are thousands of open technician positions across the nation, and it takes about five years for someone to become fully productive.

      However, the path forward isn't straightforward for everyone. The work can take a toll on the body, and any time off translates to lost earnings. Numerous technicians experience burnout or injuries before they can reach the lucrative earning potential, resulting in many making significantly less than Hummel's $160,000, while the lack of proficient technicians is driving repair costs higher.

      Increasing Maintenance Expenses

      In fact, maintenance costs are rising faster than inflation. In November, these costs increased by 6.9 percent compared to the prior year. Over the last decade, maintenance costs have surged by 59 percent. In comparison, mechanic wages have only risen by 34 percent.

      Thus, while vehicle owners are paying more to maintain their cars, the workers performing the repairs aren’t seeing their wages grow at a similar rate, although this is a broader issue affecting many in the post-COVID economy.

      Hummel noted that Ford is willing to compensate for 14.6 labor hours for the F-150 he was working on during the interview, even if he completes the job in under seven. This efficiency is what makes the flat rate system profitable for him, but it can also pose risks for others.

      Russell Wickham understands the challenges from a different perspective. He works as a technician at a Chevrolet dealership in Indiana and has spent about a decade moving between locations in three different states. At his highest earning point, he reached $89,000 in 2022.

      “There’s no guarantee,” he explained to the WSJ. “If there aren’t enough customers, they have no problem letting you sit idle since you’re not costing them anything.”