The new approach should allow easier transfer of management and operational expertise in areas such as pilot production. High levels of commonality between plants will allow Ford to more easily install best practices throughout its system, Thursfield said. The plan, in which the supplier partners share both risks and rewards, is potentially controversial. Ford, which had previously tried such joint arrangements only in its paint shops, will now look for possibilities in other areas, including final assembly. Ford of Europe purchasing chief Bruce Swift said results from the paint shops have shown the merit of the joint venture idea.
Quality is up, costs are down.
Ford's fate as a viable European manufacturer depends on how well the Cologne experiment works. The weak euro relative to the strength of the dollar and the British pound have contributed to Ford's losses in Europe. Ford's market share has been sliding as its aging products have failed to keep up with rivals' newer ones. To cut costs, Ford decided last spring to stop building cars at its Dagenham, England, factory, formerly the lead plant for Fiesta. Cologne then became the lead Fiesta plant.