Press Release
Ford Announces Assistance Programs for Minority Suppliers
10/28/96
Ford Rolls Out Financial and Technical Assistance Program for Minority Suppliers DEARBORN, Mich., Oct. 24 -- In keeping with its commitment to become a greater force in the success of the minority supply community, Ford Motor Company today unveiled a program that offers financial assistance to selected U.S.-based minority suppliers. The program is designed to improve the viability of Ford's preferred minority suppliers during periods of robust growth. It provides suppliers with funding to help pay the interest on new loans that support growth as a result of Ford business. Ford is also exploring options to expand the program to offer minority suppliers technical assistance on a case-by-case basis. Ford will establish the program in conjunction with lending institutions. "This program will help strengthen the minority supply base by offering good manufacturers financial support during periods of rapid growth," said Carlos Mazzorin, vice president, Purchasing. "We realize that too steep a growth curve can lead to cash flow problems, and we are committed to helping our minority suppliers not only to overcome this challenge but to grow and prosper. "While we are proud of the contributions we are making to minority suppliers, we are also keenly aware that supporting these preferred suppliers with financial and even technical assistance is a sound business investment in their future and in our own future." Minority suppliers who have been identified as long-term, preferred component or service providers to Ford are eligible to receive assistance. The company will pay a portion of the supplier's interest charges on new commercial loans. Ford will not be involved in the day-to-day administration of the loans. Five lending institutions will participate in the program, including Comerica Bank and NBD Bank, both in Detroit, Key Bank N.A., working through its subsidiary Key Community Development Corporation and National City Bank, both in Cleveland, Ohio, and Old Kent Bank in Grand Rapids, Mich. "This program will be good for the minority business community and for the communities in which those businesses operate," Mazzorin declared. "Strong communities, like strong businesses, are essential to the long-term prosperity and economic growth of this nation." Earlier this year, Ford announced it had established a target to source at least 5 percent of its annual U.S. purchases by the year 2000 from minority suppliers. Successful achievement of this goal would increase Ford's sourcing to minority suppliers to $2.5 billion from $1.8 billion in 1995. Ford also has pledged support to Detroit's economic Empowerment Zone. The company provided $8 million to support the zone and has been instrumental in facilitating several agreements, including one between Lear Corporation and Bing Manufacturing Inc. to establish a new joint venture in the zone to produce automotive interior systems. The two companies have built a 40,000- square-foot manufacturing facility and created approximately 70 new jobs in Detroit. The facility, which began production this summer, supplies seating systems for the 1997 model F-series produced at the Kentucky Truck Plant. Ford also contributed approximately $400,000 to support development of the Hispanic Manufacturing Center within the Empowerment Zone. The center, established by GSC-Munoz Machine, Uniboring, Ideal Steel and Gonzales Design, will supply parts and services to the automotive industry. A day care center and training facility are being established within the center for Empowerment Zone employees.