http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/ Autoblog Comments for Sorry suppliers, Ford and other automakers set to insource more parts http://www.autoblog.com/media/feedlogo.gif http://www.autoblog.com en-us Copyright 2008 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/Feb 15th 2008 5:13PMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/If its easier to build something in house, but outsource?
Wouldnt one think this would be considered "common sense"?
Sheesh.]]>Feb 15th 2008 5:14PMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/Feb 15th 2008 5:44PMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/
Once again, Detroit sets about re-inventing the wheel.

What next? Ford buys a steel mill so it has control of the raw steel source? Or it buys a big rubber plantation so it can control the source of tires? (For those not old enough to remember, Ford did this up until the late '40s to early '50s.)]]>Feb 15th 2008 5:48PMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/Feb 15th 2008 6:13PMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/
Lather, Rinse, Repeat.]]>Feb 15th 2008 6:36PMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/
Most people who are more than seven years old know that GM, Ford, and Chrysler owned many, if not most, if not all of their parts suppliers. In fact, they are still in the process of divesting their old in-house suppliers. The shift to outsourcing and the divestiture of in-house suppliers has several causes, but the most important reason is to save money. Auto manufacturer-owned suppliers pay wages pegged to those of the UAW. Independent suppliers have a much lower wage structure. But there are other reasons.

Having an in-house supplier is no guarantee that a manufacturer will get what it wants to build its cars. GM's Fisher Body was a case in point. It built all bodies GM in North America. However, Fisher Body vexed the engineers and designers in the operating divisions with with its "can't do" attitude. The result was compromised designs that helped GM lose the quality edge to the Japanese. GM eventually folded Fisher Body, but the damage had been done.

I could be wrong, but I don't see this trend toward in-sourcing as anything other than a temperature response to current market conditions. The long-term trend in recent corporate history is toward doing only those things that the company does well and contract-out the rest. I know of nothing that will reverse this trend.]]>Feb 15th 2008 8:56PMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/Feb 15th 2008 9:23PMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/
David Halberstam wrote a book called "The Reckoning" about the rise of statistical quality control and the Deming method that examined this in depth at Ford and Nissan. If you have time, read it. It was one of the best books about the auto industry I've ever read.]]>Feb 16th 2008 7:45AMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/Feb 16th 2008 10:20AMhttp://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/http://www.autoblog.com/2008/02/15/sorry-suppliers-ford-and-other-automakers-set-to-insource-more/Feb 16th 2008 1:26PM