Ford’s group vice president of global purchasing Hau Thai-Tang said that the automaker’s annual spending budget will top $100 billion this year, reports The Detroit News.
According to Hau Thai-Tang, an anticipated rise in global vehicle production, costs of new technology and rigorous fuel economy standards will likely up Ford’s spending by 10% this year.
The spending budget includes about two-thirds dedicated to manufacturing expenses. The increased spending comes as the automaker plans to trim its number of suppliers from about 1,300 to 750.
About 80% of Ford’s supplier business comes from the automaker’s top 100 suppliers. The company plans to increase volume from about 5.7 million vehicles annually to about 8 million by the middle of this decade.
Source: The Detroit News
