Michelin, Wheel Manufacturers Join Ford Key Supplier Network

Michelin and wheel manufacturers Hayes Lemmerz and Ronal are three of 13 new companies the Ford Motor Company has added to its Aligned Business Framework (ABF). The presence of the tyre and wheel manufacturers within Ford’s ABF brings the number of key component and service suppliers Ford has chosen for long-term relationships and closer collaboration to 90.

“Strong supplier relationships are embedded in the principles of the ONE Ford plan,” said Tony Brown, Ford’s group vice president, Global Purchasing.  “By increasing our ABF network Ford is building a strong foundation of suppliers that are helping us transform our products into a global portfolio of high-quality, class-leading cars and trucks.”

Ford has added steadily to the ABF list since it was created with seven companies in September 2005 with the intention of forging a new path of collaboration between Ford and its supply base.  It now consists of 67 production and 23 non-production suppliers from around the world. ABF suppliers are playing an increasingly important role as Ford consolidates global vehicle platforms and engine architectures while increasing part commonality across its product line.  Last year, approximately half of Ford’s global production purchases were sourced to ABF suppliers, up from 34 per cent in 2006. 

Ford says its long-term suppliers also benefit from a consistent global approach to sourcing.  For example, 80 per cent of the parts used in the next-generation Ford Focus will be common around the world, allowing suppliers to that program to take advantage of global economies of scale.