SupplierBusiness
Supplying
Ford
2013 Edition
Supplying Ford
CONTENTS
OVERVIEW ....................................................................................................................................... 6
Introduction .............................................................................................................................. 6
Overall sales.............................................................................................................................. 6
Financials .................................................................................................................................. 7
PRODUCT AND PLATFORM STRATEGY ........................................................................................ 8
Strategy overview...................................................................................................................... 8
Major model programmes ......................................................................................................... 9
Platform strategy ..................................................................................................................... 14
Major platforms ....................................................................................................................... 15
Component sharing................................................................................................................. 20
Volume planning ..................................................................................................................... 22
PRODUCTION STRATEGY ............................................................................................................ 23
Production strategy overview .................................................................................................. 23
Manufacturing network............................................................................................................ 24
NORTH AMERICA................................................................................................................... 26
EUROPE ................................................................................................................................. 28
CHINA .................................................................................................................................... 30
INDIA ...................................................................................................................................... 31
ASEAN.................................................................................................................................... 32
SOUTH AMERICA................................................................................................................... 33
RUSSIA................................................................................................................................... 34
AUSTRALIA ............................................................................................................................ 35
SOUTH AFRICA ...................................................................................................................... 36
Internal supply network ........................................................................................................... 40
Modularisation strategy ........................................................................................................... 41
Supplier parks ......................................................................................................................... 42
Cluster of reference................................................................................................................. 43
Strategies for manufacturing efficiency.................................................................................... 47
PURCHASING STRATEGY............................................................................................................. 48
Purchasing strategy overview .................................................................................................. 48
Levels of vertical integration and outsourcing .......................................................................... 48
Purchasing organisation .......................................................................................................... 49
Purchasing offices................................................................................................................... 50
Key offices .............................................................................................................................. 51
Key purchasing personnel ....................................................................................................... 52
Purchasing spending............................................................................................................... 53
SUPPLIER SELECTION ................................................................................................................. 55
Supply base development ....................................................................................................... 55
Major and strategic suppliers .................................................................................................. 56
Supplier selection criteria ........................................................................................................ 64
Working with Ford ................................................................................................................... 65
GLOBAL SOURCING ..................................................................................................................... 66
Policy and plans ...................................................................................................................... 66
NORTH AMERICA................................................................................................................... 67
EUROPE ................................................................................................................................. 68
ASIA PACIFIC ......................................................................................................................... 69
SOUTH AMERICA................................................................................................................... 70
PRICING POLICY ........................................................................................................................... 71
© 2012 IHS Global Limited
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Supplying Ford
Price reduction plans and practices......................................................................................... 71
Payment terms ........................................................................................................................ 72
Cost-reduction programmes ................................................................................................... 73
Raw material price management ............................................................................................. 74
QUALITY MANAGEMENT .............................................................................................................. 76
Quality level............................................................................................................................. 76
Quality management systems.................................................................................................. 76
Integration into product development...................................................................................... 77
Management of sub-suppliers ................................................................................................. 78
Supplier awards ...................................................................................................................... 79
TECHNOLOGY ............................................................................................................................... 82
Technological positioning........................................................................................................ 82
Areas of focus ......................................................................................................................... 82
R&D spending ......................................................................................................................... 83
R&D organisation .................................................................................................................... 84
Access to supplier technology................................................................................................. 88
Approach to alternative fuels, electrification and fuel cells ....................................................... 89
Special vehicle development ................................................................................................... 90
INTERVIEW .................................................................................................................................... 92
Alan E. Draper, vice-president, Purchasing, Ford of Europe .................................................... 92
OEM-SUPPLIER SURVEY RESULTS............................................................................................. 97
Introduction to the SuRe Index................................................................................................ 97
Methodology ........................................................................................................................... 97
Executive summary ................................................................................................................. 97
Profit potential ...................................................................................................................... 100
Organization.......................................................................................................................... 101
Trust ..................................................................................................................................... 102
Pursuit of excellence ............................................................................................................. 103
Outlook ................................................................................................................................. 104
SWOT ANALYSIS - SUPPLYING FORD ....................................................................................... 106
GLOBAL FOOTPRINT .................................................................................................................. 107
FORWARD MODEL PROGRAMME ............................................................................................. 112
MAJOR SUPPLIERS – FORD ....................................................................................................... 119
LIST OF FIGURES AND TABLES
Figure 1: Global light vehicle sales, 2006-2011 [Source: IHS Automotive] .......................................... 6
Figure 2: Declining European Mondeo sales (2000–2018) ................................................................ 12
Figure 3: Ford Annual Global platform usage - 2012 and 2017 ........................................................ 20
Figure 4: Ford employees celebrate production of the company's 350 millionth vehicle at the new
Ford Thailand Manufacturing plant .................................................................................................. 25
Figure 5: List of Ford Operations Worldwide (Oct 2012) ................................................................... 36
Figure 6: Tony Brown accepting the MMSDC Corporation of the Year award .................................. 53
Figure 7: Ford’s description on ‘creating a sustainable supply chain through our aligned business
framework’ ...................................................................................................................................... 56
Figure 8: Focus Suppliers Add Jobs to Support Global Launch ....................................................... 67
Figure 9: Dr. Werner Struth, Member of the Board of Management at Robert Bosch GmbH receiving
the World Excellence Award from (left to right) Tony Brown, group vice-president Global Purchasing,
Alan Mulally, president and CEO, and Raj Nair, group vice-president, Product Development .......... 79
Figure 10: The 2013 Shelby GT500 Cobra ....................................................................................... 91
© 2012 IHS Global Limited
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Supplying Ford
Figure 11: SuRe Index 2010-2011 ................................................................................................... 98
Figure 12: Ford Motor Company - Global plant locations............................................................... 107
Figure 13: Ford Motor Company – North American plant locations ................................................ 108
Figure 14: Ford Motor Company – North American plant locations ................................................ 109
Figure 15: Ford - Forward Model Programme - by Global Nameplate ............................................ 114
Table 1: Ford financial data overview [Source: Ford Motor Company, Reuters, Moody's, Fitch, S&P] 6
Table 2: Declining European Mondeo sales (2000–2018) ................................................................. 12
Table 3: WSW Suppliers to all three models - Ford Fusion (MY2012), Escape (2012), Focus (2010) . 57
Table 4: Ford’s plant locations with production forecast for 2012 [Source: IHS Automotive] .......... 110
Table 5: Ford Global Sourcing Footprint [Source: IHS Automotive] ................................................ 111
Table 6: Major suppliers to Ford .................................................................................................... 119
© 2012 IHS Global Limited
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