DETROIT (Nov. 17)—Ford Motor Co. has told its suppliers to cut prices 3.5 percent by Jan. 1 and warned it will make more such demands next year. The reduction "is designed to ensure that we maintain momentum in our drive to achieve competitive costs," said Ford spokesman Paul Wood. The auto maker unveiled its proposal during a November meeting with its 100 largest suppliers, and it will contact the remainder of its 2,000 vendors soon. The price cuts are the latest permutation of Ford's cost-cutting campaign launched in 2002. This year Ford expects to save more than $3 billion worldwide. Of that amount, lower warranty and recall costs will account for $1.3 billion in savings. Ford also is accelerating efforts to reduce the cost of purchased components.
Ford demands suppliers cut prices 3.5% by Jan. 1
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