SinoCast China Business Daily News reported on Wednesday that Ford plans to purchase parts and fittings worth $US1 billion from China in 2003. The parts and fittings will be supplied to Ford’s factories in North America and other areas. By 2010, the figure will be up to $10 billion, accounting for 15% of Ford’s global purchases.
Go deeper with GlobalData
In fact, the three auto giants of the US are planning to purchase more raw materials from low-cost countries, such as China. Apart from purchasing more from China, Ford is encouraging more of its parts and fittings supply traders in the US to move their production to China.
Chrysler is in final talks with Hyundai and Mitsubishi for cooperation and will purchase parts and fittings from China.
The competitive prices and ever-upgrading quality make China’s products more and more popular. Ford will lower the average cost of parts and fittings by 30-40% by increasing purchases from China.
However, the United Auto Workers is against the decision of the auto giants and thinks cheap parts from China will threaten workers employed in US factories.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
The UAW has promised to urge the three auto giants to invest more in the US and ensure the US remains an auto-manufacturing base, the report said.
