Suppliers

Ford and its suppliers must work jointly to deliver great products, to have a strong business and to make a better future. In today's economic environment, achieving lower costs and improving quality will require an unprecedented level of cooperation with suppliers and the maintenance of strong supplier relationships.

Beginning in 2006, we introduced an Aligned Business Framework (ABF) with our strategic suppliers to accomplish these goals. In 2007, we continued to identify specific strategic suppliers for additional key commodities. Through this process, we are reducing the number of suppliers for select commodities and increasing the use of common parts for multiple vehicles. This will allow us and our suppliers to reduce costs and improve quality. It will also increase our level of coordination with suppliers and facilitate more joint development of new innovations. The ABF will give chosen suppliers a greater share of our business and a better knowledge of future volumes. In addition to these ABF goals, we are committed to maintaining strong relationships with suppliers by:

• Adhering to Ford Supplier Relationship Values
• Deploying a single global product-creation process that combines aggressive execution of product plans with minimal variances
• Enhancing process stability, commonality and reusability
• Improving communication by providing real-time performance data to the supply base
• Providing suppliers with greater access to senior management in small-group settings
• Establishing organizational stability models in Manufacturing, Product Development and Purchasing
• Improving order fulfillment
• Engaging the supply base in discussions on process stability, incoming quality and corporate citizenship, and involving suppliers in coalitions to create awareness of industry issues

It is important that our suppliers share our commitment to environmental and social performance. We have developed programs and partnerships to help align our suppliers' practices with our own.