Automotive companies continue to push efforts to localize their supply bases when serving global markets, often at a rate that appears significantly higher than other industries. This makes sense for a number of reasons, starting with the ability to create a natural hedge in buying materials and selling goods in the same currency. But the real reason for buying locally often comes down to a combination of the cost advantage of local suppliers, government incentives (or requirements) to source locally due to offset requirements and the added expense of importing supplies from an inherently longer supply chain. In India, Ford is one of the companies leading the local sourcing charge.
According to the above-linked article, "Ford India's commitment to launch a new product in the country every 12-18 months will see the company strengthening its domestic supplier base ... The carmaker's latest offering, Ford Figo, is a case in point. With an eye on capturing the thriving small car market, the product has been competitively priced with about 85 per cent of its components procured from domestic suppliers."Read more on
Source : http://www.spendmatters.com/index.cfm/2010/4/6/Ford-goes-Local-in-India
Author: Jason Busch
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