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Supplying Ford Supplierbusiness IHS AUTOMOTIVE Supplying Ford SupplierBusiness 2015 edition supplierbusiness.com SUPPLYING THE OEMS Ford Julian Buckley Principal Analyst SAMPLE IHS Automotive | Supplying Ford Contents Overview 5 – Turkey 52 Global market overview 6 – Thailand 52 Ford Motor Company (FMC) financial overview 7 Internal supply network 53 Modularisation strategy 53 Product Strategy 8 Supplier parks 54 Company history and strategy review 9 Cluster of reference 55 Major model programmes 10 Strategies for manufacturing efficiency 55 – 1. Focus 11 – 2. Fiesta 15 Purchasing Strategy 57 – 3. Escape 18 Purchasing strategy overview 58 – 4. Fusion 20 Levels of vertical integration and outsourcing 58 – 5. F-150 SuperCrew 22 – ABF Production suppliers 59 – 6. EcoSport 24 – ABF Non-production companies 60 – 7. Explorer 26 Purchasing organisation 60 – 8. F-150 28 Purchasing offices 61 – 9. F-250/350 Super Duty 29 Key purchasing personnel 62 – 10. Ranger 31 Purchasing budget 63 – Honourable mention - Transit 33 Supplier Selection 64 Vehicle Platforms 34 Supply base development 65 Platform strategy 35 Major and strategic suppliers 65 Major platforms 35 Supplier evaluation criteria 66 – 1. C1 36 Working with the Ford Motor Company 67 – 2. B2E 36 – 3. PN96/T1 37 Global Sourcing 68 – 4. CD4 38 Policy and plans 69 – 5. D3/D4 38 – NAFTA 69 – 6. P131/P356/P473 39 – EMEA 70 – 7. V3 39 – APAC 71 – 8. T6 39 – LATAM 72 – 9. CD1-3 40 Pricing Policy 73 – 10. CD-EU 40 Cost reduction strategies 74 Component sharing 40 Raw material price management 74 Volume planning 41 Payment terms 75 Production Strategy 43 Quality Management 76 Production strategy overview 44 Quality level 77 Manufacturing network 45 Quality management systems 77 – United States 46 Supplier integration into product development 78 – Germany 48 Management of suppliers and sub-suppliers 78 – Spain SAMPLE49 – Mexico 49 Technology 81 – Brazil 50 Technological positioning 82 – India 51 Areas of focus 82 IHS™ AUTOMOTIVE Copyright notice and legal disclaimer © 2015 IHS. No portion of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be permitted in the license agreement between client and IHS. Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions of authorship. The information contained herein is from sources considered reliable but its accuracy and completeness are not warranted, nor are the opinions and analyses which are based upon it, and to the extent permitted by law, IHS shall not be liable for any errors or omissions or any loss, damage or expense incurred by reliance on information or any statement contained herein. IHS and the IHS logo are trademarks of IHS. For more information, please contact IHS at www.ihs.com/CustomerCare. © 2015 IHS 2 2015 edition IHS Automotive | Supplying Ford R&D organisation 84 – OEM level 106 R&D spending 85 Trust 106 Access to supplier technology and process – OEM level 106 development 85 Pursuit of excellence 106 Approach to alternative fuels, electrification and fuel – OEM level 106 cells 85 Outlook 106 Special vehicle development 86 – OEM Level 106 SuRe by region 106 Future Models 87 – North America 107 – Europe 107 Interviews 89 – Asia 107 Hau Thai-Tang, group vice-president, Global SuRe by company size 107 Purchasing, Ford 90 Stephan Presser, Vehicle Engineering Manager, Ford 97 SWOT Analysis and Production Locations 109 SWOT Analysis 110 Supplier Relationship Survey 101 Global footprint 110 Introduction to the SuRe Index 102 Methodology 102 Forward Model Programmes 111 Executive summary 102 Forward Model Programmes 112 Performance review – Ford Motor Company 103 2014 SuRe survey results 103 Major Suppliers to Recent Models 121 – Top of the ranking: Trust and future potential drive Ford Everest (2015; Rayong, Thailand) 122 harmony 103 Ford F-150 (2014; Dearborn Truck, United States) 123 – Middle of the ranking: OEMs push cost reduction 104 Ford Ka (2014; Camacari, Brazil) 126 – Bottom ranking: Cost overrules quality 104 Ford Mondeo (2014; Valencia, Spain) 127 Profit potential 105 Ford Mustang (2014; Flat Rock 1, United States) 130 – OEM level 105 Ford S-Max (2015; Valencia, Spain) 132 Organization 105 Figures Figure 1: Global light vehicle production, 2009-2018 6 Platinum trim level 26 Figure 2: Engine installation for a Model T at the Figure 13: The Ford 2015 F-250 Super Duty - with the Highland Park, Detroit plant in 1913 9 four-door crew cab, overall length is 6,680mm 29 Figure 3: Number 0001 of the first-gen Focus RS, which Figure 14: Ford introduced the new Transit in 2014 for is now maintained by Ford UK 11 the 2015MY 33 Figure 4: For the first time, the new Ford Focus RS will Figure 15: The Ford B-MAX has had the B-pillar be available in North America 13 removed to help passenger entry and egress 36 Figure 5: The latest European facelift of the sixth-gen Figure 16: The Kentucky Truck Plant had the largest Fiesta was released in 2014 16 volumes of any Ford plant in the United States over Figure 6: The 2011 Ford Escape Hybrid 18 2014 46 Figure 7: The exterior designSAMPLE of the 2013 Ford Escape Figure 17: Saarlouis Assembly is home to production of is virtually identical to that of the European Ford Kuga the Ford Focus in Europe 48 18 Figure 18: The Ford plant in Valencia, Spain, now Figure 8: The latest Ford Fusion being unveiled at the produces six models 49 2012 Detroit motor show 20 Figure 19: Production of the new Ka started at Figure 9: The Ford F-1 pickup was introduced in 1948 22 Camacari in 2015 51 Figure 10: The 2014 F-150 SuperCrew STX with the Figure 20: Job 1 of the EcoSport at the Ford plant in Sport Package 23 Rayong, Thailand 52 Figure 11: The second EcoSport compact SUV - Ford Figure 21: Screen capture from IntoSite, an application do Brasil was heavily involved with development of which supports sharing of benchmarked build both model versions 24 processes 56 Figure 12: The 2016MY Ford Explorer in the top Figure 22: Hau Thai-Tang, Ford 62 © 2015 IHS 3 2015 edition IHS Automotive | Supplying Ford Figure 23: Brigit Behrendt, Ford 62 Figure 30: OEM Supplier Relations - Top of the Ranking Figure 24: The rear quarter window developed by 104 Magna International for the new Mustang 69 Figure 31: OEM Supplier Relations - Middle of the Figure 25: The Ford Lightweight Concept uses a series Ranking 104 of materials to help reduce overall vehicle weight 83 Figure 32: OEM Supplier Relations - Bottom of the Figure 26: The new Ford GT was unveiled at the 2015 Ranking 105 Detroit motor show and should be available in 2017 88 Figure 33: OEM Supplier Relations - North America 107 Figure 27: Hau Thai-Tang, Ford 90 Figure 34: OEM Supplier Relations - Europe 107 Figure 28: The 2015 F-150 range uses a series of Figure 35: OEM Supplier Relations - Asia 107 aluminium parts to reduce vehicle weight 91 Figure 36: Map for Ford global assembly plant Figure 29: The all-new Lincoln MKX was introduced at locations (includes Changan-Ford) 110 the 2015 NAIAS motor show 92 Tables Table 1: Key financial performance values for Ford Country) 2014 and 2018 31 Motor Company 6 Table 13: FMC Top 10 most-used platforms (by Table 2: Total annual United States vehicle sales Production brand) 2004-2009-2014-2019 35 and US Ford sales, with percentage values (by Sales Table 14: Comparison of annual global Ford sales and Parent) 2010-2018 7 production output (by Sales Parent) 2010-2018 41 Table 3: FMC Top 10 best-selling global models (by Table 15: Ford Ka global production (by Country) 2007- Sales brand, Global nameplate) 2004-2009-2014-2019 10 2017 44 Table 4: Ford Focus global sales (by Global Nameplate) Table 16: Ford Global production plants with annual with segment competitors 2010-2018 17 output (by Sales Parent and Country) 2014-2018 45 Table 5: Ford Escape sales in United States (by Sales Table 17: Suppliers delivering to Camacari, Brazil, for Nameplate) with segment competitors 2010-2018 19 production of Ford Ka (2014) 71 Table 6: Ford Fusion sales in North America (by Sales Table 18: Automotive sales of SuRe Index survey Nameplate) with segment competitors 2010-2018 21 repondents 108 Table 7: Ford Mondeo sales in Europe (by Sales Table 19: SWOT Analysis - Ford Motor 110 Nameplate) with segment competitors 2010-2020 21 Table 20: Suppliers and Components supplied to the Table 8: Ford F-150 SuperCrew sales in North America Ford Everest (2015; Rayong, Thailand) 122 (by Sales Nameplate) with segment competitors 2010- Table 21: Suppliers and Components supplied to the 2020 23 Ford F-150 (2014; Dearborn, United States) 123 Table 9: Ford EcoSport global sales (by Sales Table 22: Suppliers and Components supplied to the Nameplate) with segment competitors 2010-2018 25 Ford Ka (2014; Camacari, Brazil) 126 Table 10: Ford Explorer sales in North America (by Table 23: Suppliers and Components supplied to the Sales Nameplate) with segment competitors 2010-2018 Ford Mondeo (2014; Valencia, Spain) 127 27 Table 24: Suppliers and Components supplied to the Table 11: Ford F-250 and F-350 Super Duty sales in Ford Mustang (2014; Flat Rock 1, United States) 130 North America (by Sales Nameplate) with segment Table 25: Suppliers and Components supplied to the competitors 2010-2018 SAMPLE30 Ford S-Max (2015; Valencia, Spain) 132 Table 12: Top 10 global markets for Ford Ranger (by © 2015 IHS 4 2015 edition IHS Automotive | Supplying Ford Company history and strategy review acquisition by Ford in this buying spree was Land Rover, which was bought from BMW in 2000.
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