Ford yesterday said it expected sourcing for parts and components from China to reach $US1 billion by the middle of next year and that could rise to more than $10 billion by mid-decade, as part of its overall drive to cut costs, the Financial Times (FT) said.

Ford chief operating officer Sir Nick Scheele told the FT: “As we expand our manufacturing facilities in China and attract suppliers, I anticipate sourcing in China to be in the high single figure billions and can see it going into double figures…It could probably happen by the mid-decade.”

The FT said that Ford spends about $90 billion a year on purchasing, of which about two-thirds is spent on procuring parts and components for vehicles.

The newspaper said Sir Nick told analysts at Credit Suisse First Boston he expected sourcing from China to reach about $1bn “by the middle of next year. It will be a significant saving.”

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