New Delhi, Aug 8: Auto major Ford Motor Company is planning to make India a global base for procuring components for its cars as part of its worldwide sourcing strategy. Sources said a global sourcing team comprising of top-level managers from the Detroit-based company visited the facilities of the auto component manufacturers recently. The visit was at the initiative of Rich Sutton, senior manager, Ford who had seen some of auto component facilities earlier in the year.In what may be a clear indication that Ford means serious business, this was followed by a delegation of 20-odd auto component manufacturers who visited the company's plant at Detroit to interact with the company on its global sourcing strategy and e-commerce initiatives. The manufacturers were part of the delegation from Automotive Component Manufacturers Association (ACMA).
"If the deal goes through, the country could get business worth billions of dollars", sources added. Around 10 global buyers of Ford were also present at the interaction between the domestic manufacturers and specialised managers from Ford. The next step to take these visits further would be tie-ups which are forged between vendors and Ford Motor Co. The interaction covered a host of issues including research and development for new products.
The Ford team also explained how component manufacturers give total solutions to car companies and how new products are developed. The e-commerce initiatives of the company were also discussed. Worldwide, the big three - General Motors, Ford and Daimler-Chrysler - have launched `Covisant', under which they can go for online purchase of components, amongst other things. This move is aimed at cutting down on raw material costs.
The domestic industry, through the visit of Ford's facilities, will be better equipped to undertake business in the country and improve its products for selling in foreign countries. The auto component industry was represented by suppliers who provide components for the entire car assembly including transmission, filters, seats, locks, lighting, radiators amongst other things. The auto component companies who were on the visit were Lumax, Lucas TVS, Ucal, Bharat Seats, Omax Auto, International Auto Ltd and Samkrg Pistons, Rojeetasha Stamping, Vikrant Auto Suspension, JMP Manufacturing, amongst others.
The auto component manufacturers also visited the Toyota plant at Canada to study its highly productive system under which there is complete reduction of waste and inventories. The entire supply chain follows the just in time principle at the plant.
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