Ford Intends To Buy $3 Billion China-made Components To Cut Costs

Ford Motor Co. announced earlier that it will beThe building of the plant is done in cooperation
purchasing as much as $3 billion worth ofwith Mazda Motor Corp, its affiliate. That particular
China-made components to boost its aim to cutinvestment proved to be beneficial because Ford
production costs. The purchase transaction isChina sales more than doubled in the first three
anticipated to take place this year."Ford will buyquarters of 2006. The automaker sold 114,685
between $2.5 billion and $3 billion in auto parts invehicles via direct sales. It was approximately 2.2
China," said William Ford Jr., chairman of thepercent of the 5.28 million vehicles sold in the
Dearborn, Michigan-based carmaker. Bill Fordparticular period in China.Ford shares the biggest
explained, "We are only scratching the surface inslice of China sales with American auto giants -
China. China is very key to our global sourcingGeneral Motors Corp. and DaimlerChrysler AG's
strategy particularly as the quality of the localChrysler Group. General motors divulged that its 3
suppliers' ramps up."Analysts in the auto industryquarters China sales increased by 37 percent to
explained that the reason behind the purchase is645,680 units. DaimlerChrysler AG, on one hand,
the automaker's need for cheaper auto parts toreported perfected sale of 16,400 Mercedes-Benz
satisfy its goal to cut costs up to $6 billion byluxury cars in China and Hong Kong within same
2010. It can be recalled that Ford experienced aperiod.Experts are saying that the recovery plan
slumped sales in the United States. Said plightof Ford has substantially contributed to the surged
resulted to third quarter loss amounting to $5.8in sales. Nonetheless, some of the analysts noted
billion.Among the 3 largest American automakers,that the automaker is moving too slow while its
Ford was the last to produce vehicles in China.rivals are taking swift yet precise steps.Jason
Production took place in Chongqing city in the yearMoore, a 35 year old freelance writer from
2003. Ford Fiesta parts and those of MondeoAustin, Texas. He also works as a marketing
where assembled in the territory. In that specificanalyst for an established auto parts store in the
endeavor, the automaker invested $1.5 billion.Incountry. You can visit Ford Fiesta parts for more
2004, Ford agreed to put up a third factory ininformation.
Nanjing city, China to assemble its 8 new models.