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Electronics Production | August 26, 2009

Ford cuts down on suppliers

Ford plans to trim its supplier network to around 750 - 850 companies. During the next 12 to 18 months, the company plans to half the number of its suppliers.
"At least 80% of the components for a global vehicle program will be supplied by a single supplier in the future. We are already implementing this new strategy with the new Ford Focus", said Birgit Behrendt, purchasing manager for Ford Europe, in a interview with the German magazine 'Automobile Production'.

Ford uses its so called 'Aligned Business Framework' for choosing its suppliers - which focusses primarily on long-term collaborations. Ford currently includes 82 preferred suppliers in this program and contracts are always awarded for lifetime of a car model.

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