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Ford Motor Co. announced earlier you buy as much as $ 3 billion of components made in China to further their goal of reducing production costs. The purchase transaction is anticipated to take place this year.
"Ford will buy between $ 2.5 million and $ 3 billion in auto parts China, "said William Ford Jr., chairman of the Dearborn, Mich.-based automaker. Bill Ford said," We're just scratching the surface China. China is key to our global sourcing strategy in particular in the quality of local suppliers ramps "Up".
Analysts automotive explained that the reason behind the purchase is required from the automotive auto parts cheaper to meet its goal of reducing costs up to $ 6 billion in 2010. It is recalled that Ford experienced a sales fell in the United States. This situation resulted in third-quarter loss totaled $ 5.8 billion.
Among the 3 largest U.S. automakers, Ford was the last to produce vehicles in China. The production took place in the city of Chongqing, in 2003. Ford Fiesta parts and Mondeo, where they met in the territory. In this endeavor Specifically, the automaker spent $ 1.5 billion.
In 2004, Ford agreed to put a third factory in Nanjing city, China to meet its 8 new models. Construction of the plant is done in collaboration with Mazda Motor Corp, its subsidiary. Particular investment, Ford proved to be beneficial because China sales more than doubled in the first three quarters of 2006. The company sold 114,685 vehicles through direct sales. Was approximately 2.2 percent of 5.28 million vehicles sold in the particular period in China.
Ford shares the lion's share of sales in China with U.S. giants car – General Motors Corp. and DaimlerChrysler AG's Chrysler Group. General Motors reported that 3 quarters of its sales in China rose 37 percent to 645,680 units. DaimlerChrysler AG, on the one hand, reported improved sales of 16,400 luxury cars Mercedes-Benz in China and Hong Kong, during the same period.
Experts say the plan Ford's recovery has contributed substantially to sales rose. However, some analysts said the automaker is moving too slow, while its rivals are taking swift action but precise.
About the Author:
Jason Moore, a 35 year old freelance writer from Austin, Texas. He also works as a marketing analyst for an established auto parts store in the country.
Article Source: ArticlesBase.com – Ford Intends to Buy $3 Billion China-made Components to Cut Costs