Ford Revokes a Supplier's Q1 Status

Marc

Hunkered Down for the Duration
Staff member
Admin
#1
There IS a God!

Just received word from a friend that Ford yanked their Q1 over some bullstuff issue. The company president just notified Ford that if they did there would be no more shipments, that they will consider all Ford contracts void and will not accept any future Ford business.

Awaiting developments. Will let you know if (how quickly) Ford gives in.
 
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A

Aaron Lupo

#2
What are they supplying Ford with? If they are not a sole source supplier I doubt Ford will "give in".
 

Marc

Hunkered Down for the Duration
Staff member
Admin
#3
I'm not sure if they're sole source - I believe they are. I enjoy seeing, but have rarely seen (only once before), a company stand up and tell Ford to go fly a kite after being beaten up over some trivial issue. I can say the company's Q1 status was definitely revoked effective today.

I can't go into any specifics for obvious reasons, but according to my contact people at the company involved supposedly are cheering.
 
A

Aaron Lupo

#4
The company your friend works for may consider the items "trivial" but it is pretty obvious Ford does not. Without knowing the specifics it is hard to say. However if they are not a sole source supplier to Ford it may hurt them more than it does Ford espically if Ford is thier largest or one of their largest clients. Just some thoughts.
:bigwave:
 

Atul Khandekar

Quite Involved in Discussions
#5
Obviously, Ford is not the only (or even major) customer for this company. It would be interesting to see if Ford gives in ( and set a precedence?)
 
A

Aaron Lupo

#6
Atul Khandekar said:

Obviously, Ford is not the only (or even major) customer for this company. It would be interesting to see if Ford gives in ( and set a precedence?)
Atul, you assume that Ford is not their largest customer. I don't think Ford will give in, remember for every supplier that does not want fords business there are 50 more waiting in line to serve them.
 
A

Al Dyer

#7
I just have to ask what specifically was the noncomformance, Ford does not just arbitrarily yank Q1 unless there is a reason or ongoing deficiency.

Does anybody think that Ford would pull the Q1 unless they had another source?

More power to the owner that told Ford to kiss his A**, he obviously has other concerns that don't include Ford.

I think there is more to the story?:bigwave:
 

Marc

Hunkered Down for the Duration
Staff member
Admin
#9
A few more details trickled in. Dispute was over a MMOG requirement which Ford originally verbally waived. Company has been Q1 since about 1991.

Sam said:

And I'm sure this person will blame it on the employees when comes time for the layoffs.
No - Ford is not the majority of their business so they can afford to say "....enough is enough..." so no layoffs (my, that was a serious note!). Bottom line to me is any company stupid enough to pin their fortunes on one or two accounts, especially automotive, are down right speculative and are high risk bets.

My delight is I have several clients who do Ford work. I've been to Ford supplier meetings on Rotunda (one of which I wrote here about in a thread and both Ford and Omnex let me know they knew with Ford 'talking to' one of my clients who knew what was happening so he said "And your point is?" to the Ford guy!). I've watched Ford cost these and other companies a small fortune (including paying for me...) over really stupid stuff. Then they want a price reduction.

But, Ford's financial picture is most telling. Couple that with Dan Reid admitting last winter that QS didn't show the savings they anticipated (which many of us predicted back in 1995) and his unbelieveable gall to blame the failure on the auditing, I just have to laugh out loud. I well remember the QS-9000 Interpretations. What was that one release - something like 45 pages of 'Interpretations'? Give me a break.

On the other hand I will say what I have said many times: If you want to dance with Ford, or any other huge, obnoxious company, you have to follow their lead and do as they say - right or wrong. So you deserve what you ask for.

The last thing in the world I would want to be (i.e.: you'd really have to pay me a lot of $) is a quality manager (much less a QE) at an automotive supplier because I'm not a masochist.
 
A

Al Dyer

#10
Dance with the devil and live with the devil. Otherwise, dance with many devils and drop those which you don't need.
 
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