Ford to drop 1,700 suppliers, keep 800: report
Updated: 2006-01-23 20:21
Ford Motor Co. intends to cut the number of its suppliers
around the world to around 800 over the next few years from about 2,500 now,
industry paper Automotive News reported on Monday.
A general view of the Ford Motor Wixom
assembly plant in Wixom, Michigan January 21, 2006. Ford Motor is expected
to announce its 'Way Forward' restructuring plan on Monday, closing plants
and laying off thousands of workers in North America. Picture taken
January 21, 2006. [Reuters]
That would be a bigger drop than originally planned by Ford, which has said
in the past it would reduce the number of suppliers by around half in a bid to
get better technology at lower cost.
Ford buys about $70 billion of parts annually, the paper said.
The number two U.S. carmaker was due later on Monday to unveil details of its
second restructuring of North American operations in four years.
Automotive News quoted Neil De Koker, president of the Original Equipment
Suppliers Association, as revealing the new supplier number last week while
addressing an Automotive News conference in Michigan.
He said Ford's global purchasing chief Tony Brown had outlined the plan to
600 suppliers at a meeting in October.
The paper said Ford spokesman Paul Wood had confirmed the more aggressive
Ford has already announced 27 preferred suppliers who will increase their
future business with Ford. They include Johnson Controls Inc, Dana Corp, Lear
Corp and Visteon Corp.