Ford and Its Outsourcing

2708 WordsJun 7, 201211 Pages
Ford Motor Company and its Outsourcing Company Overview: Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, manufactures or distributes automobiles across six continents. It is a publicly traded company on the New York Stock Exchange. The Company has about 198,000 employees and 90 plants worldwide with the automotive brands include Ford and Lincoln. The Company also provides financial services through Ford Motor Credit Company. The revenue of the company is $136.26 billion with a net income of $20.21 billion by 2011. Ford’s Virtual Integration Strategy: From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In…show more content…
ABF companies enter into long-term relationships with Ford to strengthen collaboration and drive mutual profitability and technology development. Ford’s commitments to ABF companies include long-term sourcing, improved parts commonality and more information sharing of product and manufacturing plans, as well as forecasts. Supplier commitments include increased financial data transparency, commitment to minority- and women-owned enterprises and bringing leading-edge technology innovations to Ford. With the new additions, Ford now has 76 production and 26 nonproduction companies in the ABF network. Ford Global Expansion and Growth Ford has big plans for India, China and the region. As part of their better plan for the region they are investing in additional capacity, expanding their dealer networks and further developing their supply chain. The growth potential in this part of the world in the next 10 years is outstanding. China will remain the largest car market in the world for the foreseeable future and India will be the third largest market in the world in the next 10 years. Ford expects 70 percent of its growth in the next 10 years to come from its Asia Pacific and Africa region. This region encompasses markets on three continents, including Australia, China, India, Thailand and South Africa. Industry sales in the region increased from 24.5 million units in 2009 to an estimated 30.7 million units in 2010. In India and in the rest of
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