AutoRevista.- The Automotive Industry is going through a transformation towards digitalization and sustainability. What are the suppliers’ requirements and homologation criteria for the whole value chain?
Juan Carlos González.- We have a team based in Spain and Morocco in charge of developing new suppliers’ sites for Ford. We have developed over the years a very thorough methodology supported by our corporate tools and procedures.
First, we evaluate the Product Portfolio and the technical capabilities as well as the innovation ideas of the supplier in conjunction with our Product Development experts. At this stage, other factors are taken into consideration such as the vertical integration, control of the Tier-n supply base, their global footprint and experience as tier 1.
We are designing our optimal long-term footprint based on the components required for the new generation of Electric Vehicles
We use specific analytical tools to understand if this site could deliver a total cost opportunity considering the physicals of the components, specific economic data of the location, freight, and packaging costs.
After this, we start several processes in parallel:
AR.- Is there a focus on developing a network of critical suppliers’ ecosystems much closer to the OEMs Manufacturing sites?
J.C.G.- This industry is in a fast-changing environment with unique challenges ahead. The events happening over the last years have put a greater focus on some critical areas of the value chain:
We continue strengthening the relationships with our key suppliers, regularly exchanging on the effects of these challenges, and setting up action plans together. At the same time, we are designing our optimal long-term footprint based on the components required for the new generation of Electric Vehicles and considering total landed cost, rules of origin and sustainability requirements.
We are communicating to our suppliers how should this optimal footprint look like well ahead of the Product Development phase of the new programs. This optimal footprint is not stopping at the Tier 1 level but looks deeper down in the full value chain.
This optimal footprint is not stopping at the Tier 1 level but looks deeper down in the full value chain
For instance, last year Ford of Europe signed on to two key supply chain initiatives which seek to establish industry standards for data-sharing between partners and the assessment of production sites sustainability.
The first initiative is the Catena-X Automotive Network, established to improve transparency of the supply chain, and to support improvements in sustainability and efficiency. The second is the Responsible Supply Chain Initiative (RSCI), which provides tools, measures, and support to achieve a more sustainable supply chain.
Finally, Ford has recently launched the new Manufacture 2030 climate program to progress in our carbon neutrality goals. It helps our suppliers establish science-based targets, and measure, manage and reduce climate emissions, water usage, and waste. 3,000 global Tier 1 suppliers were invited to participate in Phase 1.
Ford has recently launched the new Manufacture 2030 climate program to progress in our carbon neutrality goals
AR.- What is the value added of the relationship with Automotive Clusters and other Suppliers Associations?
J,C,G.- Ford cooperates with all these Associations as we are convinced that they are fundamental for the industrial development of the country. Its existence allows to:
Within my team we keep in touch with these associations, particularly to efficiently explore the industry network and be aware of the latest news in the sector.
AR.- How do you think that the Spanish Suppliers Industry should evolve to make Spain an attractive country to manufacture vehicles?
J,C,G.- This industry is more than ever before in a very competitive environment and under a rapid transformation. The continuous improvement of competitiveness is fundamental to continue as one of the leading countries in manufacturing vehicles and components. The focus should be put on the following areas:
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