Ford to slash vendors of key parts
Big shift in the way it does business could help finances
September 30, 2005
BY SARAH A. WEBSTER
FREE PRESS BUSINESS WRITER
Ford Motor Co. said Thursday it will reduce by half the number of companies from which it buys 20 key parts and commodities such as seats, axles, brake systems and bumpers for its vehicles.
The move represents a major overhaul to the way Ford does business with parts makers and will impact about half of the company's annual, $70-billion production buy worldwide.
Tony Brown, senior vice president of global purchasing for Ford, refused to say how much streamlining the number of parts suppliers with whom Ford works might save the company.
The move is being made because the current way of doing business "is not working effectively for our suppliers, and it is not working effectively for us," Brown said during a conference call with journalists.
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