DETROIT, Mich. (Dec. 2, 2005)— Pirelli & C. S.p.A. and Hankook Tire Co. Ltd. are among the latest 12 strategic suppliers named by Ford Motor Co. to its list of preferred parts makers.
The new preferred supplier list is part of a major effort at Ford to improve its historically combative purchasing policies. Pirelli and Hankook are the first tire companies selected.
In the first phase of its new program, Ford plans to cut in half the number of key suppliers to 100 or fewer from about 200. Phase one covers suppliers of 20 key commodities, including parts such as axles, seats and brakes. Those commodities make up half of Ford's production purchasing buy, or about $35 billion annually.
More suppliers will be named to the list in the coming weeks. Ford expects to finalize the list of preferred suppliers for the phase-one commodities by mid-2006.