DETROIT -- Ford Motor Co. appears ready to end its on-again, off-again price-cutting wars with its own suppliers.
Last week, Tony Brown, Ford's global purchasing chief, introduced new purchasing guidelines that will make Ford act a little more like Toyota and a little less like Ford. Brown said he will:
In a Thursday, Sept. 29, interview with Automotive News, Brown said the new approach will help Ford speed up product development, reduce costs and minimize quality glitches during vehicle launches.
In a conference call earlier, Brown said: "I pay a lot of attention to what the competition is doing. We said, 'We have a problem in terms of the business model in this industry. It's not working effectively for our suppliers. It is not working effectively for us.'"
Brown said he has been discussing the initiative with Ford's top suppliers for three or four months. Ford's 200 biggest suppliers currently represent half of Ford's $90 billion annual global purchasing budget.