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Ford To Spend $1bn A Year In China

Ford Motor Company expects sourcing for parts and components from China...

Ford Motor Company expects sourcing for parts and components from China to reach $1bn by the middle of next year and it can rise to more than $10bn by mid-decade, as part of its overall drive to cut costs.

The Ford Company currently expands its manufacturing facilities in China and attracts suppliers.

Ford spends about $90bn a year on purchasing, of which about two-thirds is spent on procuring parts and components for vehicles. So for the company $1bn will be a significant saving.

Ford's restructuring plan is based on typical annual car sales of about 16m, against about 17m of sales volume for the industry this year.