Ford targets $11.2 billion in product savings by 2004
Reuters / October 31, 2002
DETROIT -- Ford Motor Co. executives said Thursday they were targeting $11.2 billion in savings from their global product purchasing over the next two years.
The figure represents about 15 percent of Ford's total global annual purchasing of $75 billion for the parts and materials needed to built the automaker's cars and trucks.
Ford Group Vice President David Thursfield told reporters he would be "disappointed" if the company did not get those savings through several new cost-cutting techniques. These include working closely with suppliers to eliminate waste, intensified parts sharing and adjusting the content in some vehicles, he said.
Jim Padilla, head of Ford's North American operations, said the unit was on track to make money in its automotive operations this year, meanwhile, and added he expected it to "maintain a very positive position next year."
Ford is in the midst of a multi-year turnaround effort after last year's loss of $5.45 billion. Savings on product development costs are a key part of the bid to return the world's No. 2 automaker to profitability.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....