Ford Motor has added two additional suppliers to its list of preferred suppliers.
ThyssenKrupp Automotive and Tenneco Automotive have joined Fords list. The list has grown to 29 companies since Ford announced the program in September.
Under the program, Ford is trying to whittle down its number of global suppliers and build closer working relationships with those that remain.
In the first phase of the program, Ford has identified 20 global commodities that make up roughly half its annual global purchasing bill. For each of the commodities, Ford will rely on just two to four suppliers.
The first phase is targeted for completion by the middle of this year. Ford hopes to trim the number of suppliers by 50 percent in those 20 commodities to 100 or fewer.
Ford currently spends about $70 billion (E58.7 billion) annually on global production parts. It has more than 2,000 global production suppliers. Ford wont say how many suppliers will be left by the time it fully implements its preferred supplier program.
But the cuts are expected to be drastic. Ford intends to finalize the components covered by the programs second phase this year. In 2007, it will name the suppliers chosen to produce those phase-two components. Ultimately, up to 80 percent of its global parts buy will go to vendors on Fords list of preferred suppliers.