This is not a social program. Ford wants to nurture minority-owned businesses but they have to meet the same cost and quality standards as other suppliers, Iori said. Ford has encouraged its direct suppliers, such as Strattec, to seek out minority subcontractors for several years. But this year it set the 5 percent goal, he said. Direct, indirect Strattec's program tracks direct and indirect spending the company does with minority suppliers.
Direct spending is with suppliers of parts used in lock production.
If a minority firm supplies a spring that goes into a lock mechanism, that's a direct cost, Hering said. If a minority firm supplies the computer on which the spring is designed, that is an indirect cost. That is where Vanguard Computers Inc., Wauwatosa, comes in. Vanguard has been supplying computers to Strattec for almost a year, he said. Although the field is highly competitive and there is great pressure to hold the line on costs, once a small company lands one auto supplier contract, it can land others, said Wangard.