Ford Dealers to be Seeing Any Color - So Long as it is Black

Henry Ford, the father of the over 100 year-old motor company that bears his name, is credited with saying, "Any color - so long as it's black." While he was speaking of the not-so-wide-range of paint colors available for the Model T from 1915-1925, the color is always highly sought after on accounting books.

With struggling economic times, more and more car dealers are seeing red these days. But black is the color Ford is hoping their franchisees will see soon. To assist in this effort, one step Ford is taking is to drastically downsize their dealers. With a hope to reduce the 500 franchisees in the top markets by one-third, Ford plans to meet and discuss plans with their dealers at least twice over the next few months. It is hoped that Ford's offering of financial incentives to relinquish the Ford franchise will be the needed spoonful of sugar to help the medicine go down.

Although it is a tough situation, Ford is committed to their enhancing their high-end Lincoln brand and hoping to elevate their remaining dealers' ability to be profitable. The reduced dealer network in strategic markets, should enable them to do both.

Ideally, the personal meetings and the financial incentives will stay the hand of negative publicity and be an effective way to assist the terminated dealers, their businesses, and the surrounding community.

Sample Test Question: Task 1-F-6
Supplier management professionals should be acutely aware of, and plan carefully for downsizing as it impacts a community, for all of the reasons below EXCEPT:

A) Many states have passed community impact laws that define processes for plant downsizing or shutdown.
B) Negative publicity can harm the buying organization.
C) Negative publicity can harm the supplier.
D) Phase-outs need to be avoided during the organization's high volume periods.

"Make the World Safe for Diversity" John F. Kennedy

They may not be the biggest among their competitors, or have the deepest funding, but minority- and women-owned businesses are a substantial part of US automakers' supply bases. In an effort to support businesses that tend to locate in the heart of America and often employ an otherwise disadvantaged population, the auto industry is setting the bar for doing business with this particular supply group.

Ford has a goal of directing 10% of their annual supplier spend to socially or economically disadvantaged suppliers. Such suppliers represent 404 of their 6,800 suppliers. In 2009 they spent $2.7 billion with minority- and women-owned businesses and they will exceed that goal in 2010.

About half of that or 5% of GM's total spend is with minority- and women-owned businesses which make up over 10% of their supply base.

Chrysler leads them all with over 13% of their spend being directed to businesses owned by minorities and women.

All of this does not happen magically by running a spend report at the end of each year. These automakers have personnel and programs dedicated to nurturing and growing this unique supply group. However, when it comes to awarding contracts, there is no favoritism. These suppliers must compete and win the bids on their own.

For more information see: http://www.detnews.com/article/20100930/AUTO01/9300368/1148/Suppliers-owned-by-minorities--women-persevere

Sample Test Question: Task 1-F-3

Possible reasons to develop and implement a supplier diversity program include all of the following EXCEPT:

A) To be eligible to do business with the government
B) To enhance your company's competitive advantage
C) To offer charity in giving business to suppliers that would not otherwise qualify for a contract
D) To support local and global initiatives