Ford Stops Parts Business Continuously Sells 17 Factories

In 2005, Ford Motor Co., Ltd. announced that it had bought 17 parts of its plant and established its own parts and components business to prevent the supply of spare parts from shrinking its largest parts supplier, Visteon Masters. At the time, it was named ACH. However, due to the continued downturn in European and domestic market economies in recent years, Ford had to restructure and sell its parts and components companies. Recently, overseas media reported that Ford had sold its last subsidiary, which was mainly responsible for the air-conditioning business, on October 29, which also announced that Ford Motor had completely stopped its parts and components business.

Plymouth Township, an automotive air-conditioning subsidiary of Ford Motor Company, located in Plymouth, Michigan, recently announced that it will be sold to Detroit Thermal Series Co., Ltd., a joint venture between Raytheon and Detroit V. Johnson. In fact, the two companies have always had cooperation intentions. Since 2006, there have been six years of history. At present, some corresponding formalities are being processed. It is initially expected that the final transaction can be completed before the end of 2014 three years later.

In August of this year, Ford also owned four subsidiaries, which are responsible for the production of vehicle interiors, lighting, hydraulic steering, and vehicle air-conditioning business. After a series of sell-offs and sufficient actions, Ford was in the spare parts company ACH. Seven years after its establishment, it will eventually disintegrate. In fact, after analysis, it is not difficult to find that the excessive labor costs of the US market and the tight cash flow brought about by the unstable market economy have accelerated the process of Ford’s abandonment of parts and components business.

In recent years, Ford Motor Company has experienced great ups and downs, and has successively cooperated with many famous brands. In 1992, Ford acquired 34% of Mazda. In 1999, it invested 6.45 billion U.S. dollars to acquire Land Rover. Just one year later, Ford announced that it would take Volvo's global car business as its subsidiary. At that time, it invested a total of 2.7 billion U.S. dollars. Ford Motor Co., Ltd. is rich and powerful. However, after a series of changes, Ford's current strength is far less than before. Ford Motor's share price has declined by 3.7% from the beginning of the year to the present. Compared with its major competitors, Ford’s profitability is not optimistic.

As an auto company, adequate cash flow is an important prerequisite for the company's development and growth. In the face of the current market withdrawal, Ford's sales of its business is a forced practice. In contrast to the General Motors Group, which is also an auto giant, it chose to form an alliance with the PSA Group to further reduce manufacturing costs. Ford Motor Co., which has been the development center of “One Ford”, may now also need to reconsider the direction of development.

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