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Ford: More suppliers are ailing in '09

(Agencies)
Updated: 2009-06-24 22:42

DEARBORN, Michigan: Ford Motor Co. says the number of its suppliers that are under distress, bankruptcy protection or under observation has more than doubled in the last year, as slumping auto sales force automakers to slow production and order fewer parts.

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Ford's global purchasing chief, Tony Brown, said Wednesday that most of these suppliers are being monitored, although company officials are looking at ways to aid distressed suppliers operationally. Ford has limited funds to financially support the ailing companies.

Ford says it is accelerating its plans to consolidate the number of suppliers it uses. The company says 850 suppliers will be eligible for future work at the end of the year, down from the 1,683 eligible at the end of 2008.