Ford expands purchases with preferred suppliers

David Sedgwick
AUTOMOTIVE NEWS

Published: August 6, 2013 5:25 pm ET
Updated: August 6, 2013 5:27 pm ET

Related to this story

Topics Automotive
Companies & Associations Ford Motor Co.

TRAVERSE CITY, MICH. — Preferred suppliers to Ford Motor Co. will get a bigger share of the automaker's purchasing budget — 70 percent, up from 65 percent — as the automaker continues to downsize its network of suppliers.

Birgit Behrendt, the company's vice president of global programs, said today that 104 suppliers in Ford's Aligned Business Framework will get a bigger share of the pie. However, Behrendt did not indicate how long it would take to shift more of Ford's purchasing to these vendors.

The company, in a statement, said it is now calling the program the Aligned Business Framework 2.0.

In 2005, Ford launched its Aligned Business Framework to form long-term relationships with key suppliers. The list currently includes 76 parts manufacturers plus 28 non-production service providers. The companies in Ford's ABF program are part of a larger group of 750 suppliers that Ford considers to be key vendors.

Behrendt confirmed today that these 750 suppliers will get all future Ford contracts, while an additional 400 vendors eventually will be dropped from Ford's supplier network.

"We've always said we wanted our ABF suppliers to participate in our growth," Behrendt said today in an interview. "They've almost doubled their share of our purchasing budget [since 2005], and we don't think we've reached the limit."

Behrendt also said the automaker will continue to facilitate the creation of minority-owned joint ventures like Detroit Manufacturing Systems LLC and Detroit Thermal Systems LLC — both created last year.

DMS is a joint venture between Native American descendent Andra Rush and French supplier Faurecia SA and DTS was created between Redford Township-based V. Johnson Enterprises LLC and French supplier Valeo SA.

Behrendt said these joint ventures create opportunities for both suppliers and allows Ford to consolidate its supply base.

Today's news underscores Ford's commitment to its ABF program under its new purchasing chief, Hau Thai-Tang, who replaced retiring purchasing chief Tony Brown on Aug. 1.

Dustin Walsh of Crain's Detroit Business contributed to this report.


Comments

Ford expands purchases with preferred suppliers

David Sedgwick
AUTOMOTIVE NEWS

Published: August 6, 2013 5:25 pm ET
Updated: August 6, 2013 5:27 pm ET

Post Your Comments


Back to story


More stories

Image

Fiat Chrysler drops Chrysler Group name in favor of FCA US

December 16, 2014 9:05 am ET

Chrysler is Chrysler no more. Fiat Chrysler Automobiles, the Netherlands-based parent company of what was Chrysler Group LLC, said today that it has...    More

Izo-Blok opens Polish car part plant

December 15, 2014 9:16 am ET

Poland's plastic car parts maker Izo-Blok has launched its new production facility in Chorzˇw, in Poland's southern region of Silesia.    More

Image

Automotive supplier IAC expands in Alabama

December 12, 2014 12:34 pm ET

Automotive giant International Automotive Components has expanded its Alabama operations with a new 126,000-square-foot facility located adjacent to...    More

Image

Suppliers hit back against automakers' cost-cut demands

December 12, 2014 11:22 am ET

Relations between automakers and suppliers are deteriorating largely because of intensifying cost-cutting demands, according to a report. Vehicle...    More

Image

Lacks Enterprises names new president

December 11, 2014 12:39 pm ET

Tier 1 automotive supplier Lacks Enterprises Inc. has named Nick Hrnyak as its new president.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events