Suppliers to own equipment in revamped Ford plant

July 11, 2001 — Ford Motor Co. is renovating a car plant in Cologne, Germany, which is scheduled to start production of new Fiesta models by the end of the year.

An innovative method of cost-sharing is being applied by Ford at the facility, whereby equipment suppliers will retain ownership of machinery and be paid on a unit-output basis.

An investment of over US$500 million is being made in new presses, robots, and production processes, while another $60 million is going towards building infrastructure in a new auto parts supplier park that will be linked to the plant by a conveyer system.

The ultra-modern plant will use both virtual and Internet-based systems to link it with auto dealers and suppliers.