October 18, 2018

FORD SUPPLIER MANAGEMENT

Viorel NutaSenior Purchasing Manager Romania

Ford of Europe

Agenda

SLIDE 2

Ford Overview

Supplier Management Overview

Production Purchasing

Indirect Purchasing

Supplier Localization Process

Ford Craiova Plant Overview

Our Foundation

SLIDE 3

Ford Is The Pioneer Of Personal Mobility Making People’s Lives Better By Changing The Way The World Moves

Saturday Evening Post Jan 1925

Ford Worldwide – Key Figures

SLIDE 4

Head Quarter: Dearborn67 plants worldwide

199.000 employees

Market on all continents

6,6 m units sold

4,700 Suppliers

SLIDE 5

Ford Locations In Europe

• Head Quarter: Cologne• 18 Ford facilities• ~ 68.000 employees• 1,6m units sold in 2017

6

Our Suppliers Are Critical To Continually Improving Product Quality and Achieving The Lowest Cost

Supplier Ford

60-70% 30-40%

Business Importance Of Our Suppliers

SLIDE 6

7

PurchasingFORD

Production Material Purchasing

Production MaterialGermany, United Kingdom,

Spain, Russia

FORDFCSD Purchasing

(Spare Parts)

Germany, United Kingdom, RomaniaProgram Purchasing

Germany, United Kingdom, Romania, Russia

FORDIndirect Purchasing

Quality (STA) Various European

Locations

Non Production Material

Germany, United Kingdom, Romania, Spain, Russia

Ford of Europe Purchasing Structure

European Team Integrated To A Wider Global Organization

SLIDE 7

SLIDE 8

Commodity Purchasing

Procurement of components and materials that are mounted on the vehicle

• Sourcing and buying• Managing Supplier Relationships• Deliver Best Cost at Job # 1• Delivering Year over Year cost reductions• Close co-operation with other areas, especially

Product Development• Proactive financial risk monitoring of supply base

and managing distressed suppliers • Management of shortages

SLIDE 9

Procurement of everything that is NOT mounted into the vehicle

(Machinery and IT, Construction works, Services, Marketing & Sales, Industrial Materials, Transportation Services)

- Sourcing and buying- Managing of Supplier Relationship- Managing of Cost and Quality- Managing of distressed Suppliers

Indirect Purchasing

Localization Process

SLIDE 10Commercial & Technical Evaluation and Common Plan Prior To Market Test

Suppliers sites to be evaluated/developed

Purchasing Process Supplier Technical Assistance Process

- Business profile- Production capacities- Logistic capabilities- Opportunities for development- Business Terms and conditions

- Management commitment for continuous improvement- Manufacturing Capabililties- Quality processes and systems

Cost analysis and Market Test

Become A Ford Supplier – NEXT STEPS

For further information on becoming a Ford supplier, please visit:

https://fsp.portal.covisint.com/web/portal/potentialsuppliers

(Online Supplier Portal)

Or contact

vnuta@ford.comSLIDE 11

FORD CRAIOVA PLANT

Craiova On The Map

SLIDE 13

90 Km From The Bulgarian-Romanian Border

History

Key facts

1976 - JVC: CITROEN with the Romanian Government1994 - JVC: Daewoo, Korea with the Romanian

Government 2006 - JV with Daewoo terminated – acquired by

Romanian Government 2008 – Ford takeover Automobile Craiova SA2010 – Ford - 100% owner of Automobile Craiova SA

2SLIDE 14

Press Shop

Slide 15-104 fully automated press lines

Body Shop

Slide 16-10New Flexible, Fully Automated (510 robots)

Paint Shop

Slide 17-10Latest 3 WET Technology

Trim & Final

Slide 18-10Flexible Line According to Latest Ford Assembly Standards

Engine Plant

Slide 19-10Cylinder Block, Head and Crankshaft Machining Line & Flexible Assembly Line

Eco Sport

SLIDE 20

FOX Engines 1.0 L

Craiova Plant Products

Second Model Planned To Roll Out

Thank you!

SLIDE 21