Ford Ramps Up China Auto Purchasing

Oct. 26, 2006
Will increase by $1 billion this year.

Ford Motor Co., which just posted a $5.8 billion third quarter loss, said Oct. 26 it plans to ramp up auto parts sourcing in China by at least one billion dollars this year. "We will purchase over $2.6 billion worth of auto parts and systems to supply the production outside China for all our brands across the world," Ford chairman William Ford Jr. said in Beijing.

Speaking at a company-sponsored environmental event, Ford said the company's new engine and assembly plants in the eastern city of Nanjing would start production next year. The operations there are run by Ford's joint venture in China, Changan Ford Mazda Automobile Co. Ltd.

Ford Motor set up an auto parts procurement center in Shanghai in 2002, and has forecast an increase in purchases in China to $10 billion by 2010. Last year Ford sourced about $1.6 billion in mainland parts.

Ford is looking to cut $6 billion in annual costs to meet its Way Forward turnaround plan by 2010. Foreign automakers are purchasing more from China, currently the world's fourth largest vehicle market, to help reduce their costs as improving quality has made parts cheaper.

Despite the rise in sales, September was up 105.5% year-on-year, Ford is well behind the pace of established rivals General Motors and Volkswagen in the Chinese market. The company earlier this year completed its one billion dollar investment in China, which was mostly focused on a new plant in the eastern city of Nanjing.

Copyright Agence France-Presse, 2006

Popular Sponsored Recommendations

What Does Agility Look Like for Today's Auto Industry?

Dec. 4, 2023
Without modern technologies, enterprises aren't able to fully analyze the risks and respond to ongoing supply chain issues and semiconductor shortages.

Five Ways Aerospace and Defense MRO Can Prepare for the New Normal!

Dec. 6, 2023
The right tools can help A&D suppliers track the essentials & ultimately, boost their margins. Advanced analytics can also help determine the profitability of contracts, drive...

Managing Supply Chain Risk in Aerospace and Defense!

Dec. 6, 2023
A&D companies need to adopt digital technologies that enable greater collaboration, active monitoring of leading risk indicators, & integration of supply chain risk factors into...

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!