Ford Oz to Continue Relationship With Some Local Suppliers Past 2017

Ford Australia says it plans to use 63 local suppliers for its aftermarket parts supply as part of its plan to help key stakeholders – employees, suppliers, customers and dealers – transition to new futures when local manufacturing ends in 2017.

It is also helping 17 suppliers earn business with its global operations beyond their current local activities, up from nine last year, after what it calls a significant investment in trade fairs and missions between the local suppliers and its global product decision-makers.

Ford has spent more than A$300 million ($213.7 million) in R&D in Australia this year and almost A$2 billion ($1.42 billion) the past six years as the only automaker that will be able to fully develop vehicles in the country.

Ford Australia CEO and President Graeme Whickman says the suppliers will help the automaker continue its global product onslaught, which led to a record number of new launches in Australia in 2015 and will gain momentum as the company plans to introduce 20 more new vehicles by 2020.

“Many people think the auto industry is closing down in Australia, but that is not the case at Ford,” Whickman says in a statement. “In fact, we are launching a record number of new vehicles and investing more than any automaker as the only company fully developing vehicles in Australia.”

Ford says the 17 suppliers with new business have expanded beyond their local operations to work with Ford to earn new contracts for the company’s global vehicle programs.

It cites parts makers MTM and Futuris as continuing to supply aftermarket components for its Falcon and Territory models locally, while supporting global vehicle programs.

Ford Australia Purchasing General Manager Carl Parkin says the core business of most of the suppliers will be local aftermarket parts, while new overseas opportunities are explored.

“This work will help us maintain a supply of high-quality parts for our customers for years to come,” Parkin says, “At the same time we can continue to come up with new ideas for our global vehicles.”

Ford’s new global products, such as the Focus, Ranger and Fiesta, are gaining traction in Australia, making up 80% of the company’s sales mix so far in 2015.

Ford Australia expects to become the country’s largest auto employer by 2018 with a payroll that will include about 1,500 highly skilled employees in engineering and design.

It says its work with suppliers is part of its commitment to support an orderly industry transition from manufacturing to sales.

“We have seen firsthand for many years the dedication and innovation of Australia’s auto suppliers,” Parkin says. “We are pleased to work with them, through our local program and engineering team, to expand their expertise on a global scale.”