Facing the looming collapse of the auto industry and a shortage of parts, many companies are turning to suppliers to fill the void.
In recent years, some manufacturers have been more proactive than others in finding the parts they need.
In response to a demand for parts, companies such as Ford, GM, Honda, and Acme have expanded their auto parts sourcing efforts to include all major automakers, according to a report from the auto parts supplier Foster Auto Parts.
This trend is set to continue as the industry’s auto industry is projected to shrink by about 10 percent over the next few years, according the Foster Auto Group.
Some of the biggest names in the auto supply chain have taken to sharing their own experience of sourcing parts for their vehicles.
“This is the only time I’ve ever seen a company go in and say, ‘We have the parts and we need the parts,'” said Mark W. Siegel, a partner at Foster Auto.
“We had to go in the dark, and we’re not happy about it.”
The trend is growing.
The demand for new parts is expected to reach over $300 billion by 2020, according to the Ford Motor Company.
For automakers, it means they’re taking advantage of an increasingly fragmented supply chain.
Companies such as GM, Ford, and Honda have taken on a different approach to sourcing parts than their competitors.
Instead of relying on an established supply chain, these companies are now working directly with suppliers that are part of the largest automakers in the world.
To put this into perspective, Ford is sourcing parts from General Motors and General Electric, respectively.
GM’s sourcing strategy has been more collaborative, said Michael Haney, an associate professor at the University of California, Santa Barbara, who has researched the auto business.
When Ford’s Ford Fusion first launched in 2019, it was still in the pre-production phase.
Ford, however, was able to build up its supply chain with other automakers that were also in the early stages of the product development process.
Haney said Ford has also had some success with sourcing parts directly from suppliers such as Schneider Electric.
With the Fusion, Ford sourced parts directly to the factory floor, instead of relying upon the dealer network that was in place for Ford cars of that time.
“We were able to work directly with those suppliers directly, and that worked better for us than doing it from the factory,” said Haney.
“It was more efficient, more cost effective, and it’s been really beneficial for us as well.”
Ford also uses the same strategy for its electric vehicle, the F-150, which was developed by GM in partnership with electric car maker Tesla Motors.
Like the Fusion and the F150, the Ford Focus electric car is also in production right now.
While the Focus electric vehicle will not be ready for market until 2021, Ford has already begun to deliver the vehicles.
Haney noted that the Ford Fusion is already available to the public, but that it won’t be available for sale until 2019 at the earliest.
If Ford does eventually start selling the car, the company is aiming to make it available in the US and Canada in 2019.
As a result, the Fusion will likely be available in dealerships in 2018 and 2019.
“Ford has taken a different path with the Fusion,” said Mark B. Johnson, president and CEO of the Ford Automotive Group.
“It’s going to be an even greater benefit to the dealers.”
“We have to be careful that we don’t overreach.
This is a critical time for our dealerships, so we’ve got to be mindful of that.”