Thread regarding Ford layoffs

Supplier Squeeze Coming, On demand price reductions.

Automotive News states that its time for Ford (and GM) to pinch pennies to improve financial performance.

As we all know, this is Ford's dog whistle to get "on demand" price reductions from the supply base.

Farley says the Ford team is dysfunctional.

From the supply base perspective they see dramatically reduced volumes from projections, a steady stream of platforms "strategically" abandoned, a disgruntled and overwhelmed workforce, constant blame for warranty issues, a shift away from mechanical components as Ford serves the market their EV Kool-Aid, and now the prices are to high.

Why would anyone want to supply FoMoCo?

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| 1634 views | | 10 replies (last February 8, 2023) | Reply
Post ID: @OP+1l3ACD5s

10 replies (most recent on top)

Ford vehicles are the sum of putting thousands of components purchased at the lowest price globally assembled together so that purchasing can get their bonuses.

Farley says we have too many engineers specifying these parts.

Customers are responsible for letting us know what doesn’t work driving industry leading recalls.

And this is our strategy

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Post ID: @2czh+1l3ACD5s

Quality .... lol

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Post ID: @1smm+1l3ACD5s

The way we treated our "partners" in the supply base was already embarrassing. If we do this we will not have a supplier left.

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Post ID: @1hzn+1l3ACD5s

I was embarrassed to be working in purchasing, it was not my choice to go there. Sooo glad to be outta there.

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Post ID: @1sec+1l3ACD5s

I know that ZF said leep your business of some parts lat year...
Of you get that from a supplier you have 100 top "Executives"

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Post ID: @1uqw+1l3ACD5s

I sat in on vendor negotiations as an SME several years ago. The meetings were conducted by purchasing and it was completely embarrassing for some of us. The strategy of purchasing was to tear down and humiliate the vendors to achieve reductions in price. We went through this mess with 3 vendors but in the end, leadership just decided to cancel the project. No wonder that some suppliers have said enough is enough.

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Post ID: @1ilc+1l3ACD5s

Supplier’s say ABF. Anybody but Ford.

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Post ID: @wfo+1l3ACD5s

If Ford didn't beat the living sn-t out of suppliers to the point where Ford thinks THEY should pay US to take their parts, perhaps we wouldn't be in such an unfriendly mess with the supply base . . .

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Post ID: @sci+1l3ACD5s

Isn't demanding suppliers give us a certain price exactly how we got into the quality issues we are now seeing? Seems stupid to double-down on stupid.

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Post ID: @tyd+1l3ACD5s

I have been hearing some suppliers have given up business in certain commodities given the direction to go away from ICE.. So the leverage Ford once had is gone. If they do not handle this with proper care suppliers will turn away from Ford.

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Post ID: @qow+1l3ACD5s

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