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Ford supplier cuts

High supply, low demand: About 2500 suppliers will cease to be on Ford's payroll.

To help stem losses Ford has taken an axe to many of its suppliers internationally

Ford logo8 Feb 2006


THE Ford Motor Company intends to slash about 1700 companies from its international supplier base over the next few years, lowering its ranks from 2500 to around 800.

The extent of the Ford supplier cuts, which came a week after Australian components suppliers and Industry Minister Ian Macfarlane made representations to senior Ford (and GM) management in Detroit, was revealed to Automotive News by the president of the US Original Equipment Suppliers Association, Neil De Koker.

Mr De Koker said Ford’s global purchasing chief laid out the plan to 600 suppliers it invited to a meeting last October. He said Ford plans to get better technology and reduce costs by doing business with fewer, more capable suppliers.

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