Ford, Renesas partner to improve our nation’s production capacity and to provide U.S. jobs

(WASHINGTON, DC ) – Ford Motor Company (NYSE: F) and Renesas Electronics Corporation (Renesas) today announced a five-year partnership that establishes the only electronics company guarantee program to ensure the flow of U.S.-made components for Ford Global Components. The company is part of Ford’s Global Components Solutions business, a global business unit dedicated to the sustainable sourcing of raw materials, and to accelerating the use of U.S.-made components.

“By partnering with Renesas Electronics, our goal is to ensure that components for Ford Global Components come from U.S. suppliers, U.S. manufacturers and U.S. parts suppliers,” said Kaveh Kian, global director of Global Components Solutions. “Renesas joins a list of strategic partners, from top tier suppliers to manufacturers, and institutes a unique program to help ensure continued U.S. sourced component demand.”

The global partner program will ensure that Ford Global Components suppliers can meet supplier requirements, withstand industry fluctuations and maintain full supply in a robust supply chain. The partnership works in concert with the company’s supplier management and a strategic sourcing programs, to ensure smooth delivery of components for Ford’s cars and trucks.

“We are privileged to be partners with Ford in this program,” said Kohan Bahlatki, vice president of global marketing, sales, service and technology solutions at Renesas. “The requirements for components required by Ford are continually increasing. This will enable Renesas Electronics to support Ford’s global electronics business in achieving its end-user goals, while positioning us to meet growing demands from key Ford customers.”

The partnership will also enable Renesas Electronics to seek out and partner with Detroit-based U.S. companies to supply its automotive applications.

“Renesas Electronics is a strategic partner for us,” said Kian. “Incorporating Renesas into the resources we have already set in motion will help to accelerate our involvement in various regions of the world. We are actively looking for U.S. companies, both Ford and independent, that have a track record of reliability and high-quality production.”

Ford Global Components LLC is a global business unit dedicated to sustainable sourcing of raw materials, and it works in collaboration with the global supplier management team of Ford Motor Company , managing ongoing global initiatives to facilitate sustainability and reduce environmental impact. By focusing on a single business unit, Ford Global Components is able to pursue innovative business opportunities and technical partnerships. As a result, Ford Global Components has substantially grown both the volume and value of its procurement products, and offers innovative solutions.

The partnership is important to local economies, in part because 70% of the components for Ford vehicles made in North America are made in the United States or Canada . When Ford Global Components manufactures in the United States, it has also established regional engineering centers to meet U.S. performance standards, and suppliers and partners have access to the company’s proprietary tooling and engineering capabilities.

Ford Global Components will continue to source its materials and components at qualified, designated North American suppliers in Ford’s Global Components portfolio, which includes Lexicon Packaging Systems, Ottumwa Packaging Systems, an engineering center in Royal Oak, Mich. , and the $750 million E-Cruisers complex in Pasedena, Mich. Also, the partnership will help build the business of U.S. suppliers, such as Rockwell Collins, that supply highly efficient and customized cabin systems for Ford vehicles.

In order to receive a guarantee from Ford Global Components, Renesas is required to establish policies that improve its own competitiveness, enable high-productivity, and maximize its profitability. Additional partners like Renesas Electronics are expected to benefit from the investment program, which will also bring Ford Global Components new business, by facilitating supply chain efficiencies and adopting information technology practices.

This statement was issued by CNBC.

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