Ford remains strongly committed to utilizing and developing supplier companies that are owned by minorities and women. Our Supplier Diversity Development office works with business leaders, trade associations and community-based organizations that represent the interests of diverse businesses.
Our annual goal is to source at least 10 percent of U.S. purchases from minority- and women-owned businesses. In 2012, Ford purchased $5.7 billion in goods and services from approximately 250 minority-owned suppliers and $1.2 billion in goods and services from more than 150 women-owned businesses. Our 2012 results demonstrated the third consecutive year of improvement and exceeded our sourcing goals for both minority- and women-owned suppliers.
Ford launched its Supplier Diversity Development program in 1978 with the goals of supporting minority- and women-owned businesses, creating business opportunities for diverse suppliers to grow into profitable enterprises and further strengthening the Ford supplier network to reflect the Company’s workforce and customer base. Ford’s minority- and women-owned suppliers are playing an important role in the Company’s revitalized and expanding portfolio of high-quality, safe, fuel-efficient products equipped with smart technologies. The following are examples of the success of our supplier diversity program over the last year:
Advanced Logistics Operations & Manufacturing (ALOM): ALOM, a woman-owned business, managed the delivery of a SYNC® software upgrade for MyFord Touch® to thousands of Ford customers. SYNC with MyFord Touch is Ford’s industry-leading connectivity and communications system available on most Ford and Lincoln products.
Devon Industrial Group: In 2011, Ford awarded Devon Industrial Group, an African-American-owned company, one of Ford’s largest construction services contracts spanning a three-year period. In 2012, Devon supported multiple projects, ranging from providing preconstruction services to managing facility renewal projects and decommissioning activities at locations in the U.S. and Canada.
Detroit Manufacturing Systems (DMS): Ford sourced some vehicle interior production to DMS, a new joint venture between Faurecia and Rush Group Ltd., which was founded in 2012 as part of the Rush Group of companies, one of Ford’s largest minority- and women-owned suppliers. DMS provides injection molding, assembly and sequencing of interior trim parts. About 500 people are expected to be employed at the new DMS facility in Detroit.
Detroit Thermal Systems (DTS): DTS – a joint venture between Valeo and V. Johnson Enterprises, a minority-owned supplier – is producing climate-control systems and components for the automotive industry, including supporting current product supply commitments to Ford. Ultimately, DTS is expected to employ approximately 500 people.
Flex-N-Gate Corporation: Flex-N-Gate, a minority-owned company located in Urbana, Illinois, is one of the first examples of Ford’s Joint Technology Framework (JTF) initiative. JTF is a special program aimed at improving suppliers’ technical expertise through access to the Company’s intellectual assets and other support. Flex-N-Gate technology is available on the 2013 Ford Fusion and Lincoln MKZ.
Husco Automotive Technologies: Husco, a Hispanic-owned company based in Waukesha, Wisconsin, was added to Ford’s list of preferred, Aligned Business Framework (ABF) suppliers. Husco produces actuators used for variable-camshaft-timing components across various Ford vehicles.
SET Enterprises: In 2012, SET Enterprises, an African-American- and veteran-owned company, was awarded new blanking business, which is part of the sheet metal production process, for the Ford Transit. SET is a strategic “blanker” for Ford’s Chicago Stamping Plant and a preferred “master coiler” in the U.S.
In 2012, Ford was honored as Corporation of the Year by the National Minority Supplier Development Council. It is the fourth time in a quarter-century that Ford has received this honor, which recognizes the Company’s commitment to minority-, women- and veteran-owned businesses and job creation.
In addition, Ford was named 2012 Corporation of the Year by the Michigan Minority Supplier Development Council (MMSDC). Ford is the first automaker to garner this award for three consecutive years, which underscores the Company’s commitment to developing and growing a diverse supply base.
Our record of minority supplier development has earned Ford a seat at the “Billion Dollar Roundtable” (BDR), an exclusive group of 18 companies that purchase a minimum of $1 billion annually from diverse suppliers. The BDR encourages corporate entities to continue growing their supplier diversity programs by increasing commitment and spending levels each year. For the second consecutive year, the U.S. Hispanic Chamber of Commerce named Ford to its Million Dollar Club for our work with Hispanic-owned businesses. In December 2012, Ford was recognized as the Michigan Hispanic Chamber of Commerce’s Member of the Year.
Ford was also named as one of America’s top corporations for its support of women-owned suppliers. The Women’s Business Enterprise Council selected Ford for its 13th annual listing of America’s Top Corporations for Women’s Business Enterprises. This is the only national award honoring corporations for world-class programs that level the playing field for women’s business enterprises to compete for corporate business. Ford became the first automaker to earn top honors for supporting women-owned businesses.
Ford earned these awards for developing and driving innovative best practices across our organization that result in productive business partnerships with minority and women entrepreneurs and valuable products and services for their customers.
We are unwavering in our commitment to incremental year-over-year percentage increases in sourcing from diverse suppliers. We encourage similar actions across our supply chain. In 2012, more than 400 of our largest Tier 1 suppliers purchased $2.1 billion from minority- and women-owned enterprises in support of Ford business.