Suppliers Named

Ford Motor Co. is adding five more companies to its elite list of strategic suppliers, no doubt brightening the day considerably for Dana Corp., DuPont Automotive, Foster Electric Co., Getrag GmbH and Hella KG Hueck & Co.

In an effort to reduce costs and improve quality, Ford announced in September that before July 2006 it would cut by 50% the number of suppliers from which it buys key “high-impact” commodity parts.

These parts include axles, brakes, bumpers, electronic controllers, exhaust systems, instrument panels and paint.

Ford currently has about 200 suppliers of these commodities, and that number will shrink to less than 100.

The strategy, dubbed the “Aligned Business Framework,” is aimed at giving suppliers longer-term contracts and higher volumes of work.

President and Chief Operating Officer Jim Padilla says rationalizing Ford's supply base will empower parts makers and drive new technology.

Suppliers that make the cut will be brought into vehicle programs earlier in the development phase and remain with those programs through multiple product cycles.

The latest five names, released to Ward's following a recent interview with Padilla, join seven others announced in September: Autoliv Inc., Delphi Corp., Johnson Controls Inc., Lear Corp., Magna International Inc., Visteon Corp. and Yazaki Corp.