Ford Motor Company

Ford Motor Company is a global automotive and mobility company based in Dearborn, Michigan. Ford Motor Company of Southern Africa has been an active participant in the South African motor industry since 1923 when we began assembling Model T cars in a disused wool shed in Gqeberha (Port Elizabeth).

Ford is helping to realise its vision in Africa today by offering South Africans a full family of smart, safe and economical vehicles, from the entry-level Figo to the pick-up truck benchmark – the Ranger. We also offer a full range of SUVs and light commercial vehicles.

All Ford vehicles offer smart technologies, stylish design, fuel efficiency, safety, service and maintenance excellence at affordable prices, giving drivers peace of mind on the road and in their pockets.

Ford Kuga 1.6 corrective actions

Phase 1

Ford South Africa is issuing a safety recall for Kuga models equipped with the 1.6-litre engine to address an engine overheating condition that could cause a fire. A total of 4,556 vehicles are affected by this safety recall in South Africa and were built between December 2012 and February 2014. Ford Kuga models with 1.5-litre and 2.0-litre engines are not affected.

Phase 2

Ford Motor Company of Southern Africa (FMCSA) has commenced with Phase 2 of the safety recall action for all affected Kuga 1.6 models and is requesting customers to schedule an appointment with their dealer to have the vehicle enhancements completed. This second phase is designed to mitigate the risk of an engine fire resulting from a cracked cylinder head caused by a loss of coolant and applies to all affected Kuga 1.6 models built at the Valencia Assembly Plant, Spain, between 8 May 2012 and 27 September 2014. In Phase 2, new hardware will be installed, comprising a new coolant expansion tank with a sensor that monitors the level of the vehicle’s coolant. Excessively low coolant levels reduce the ability to keep the engine cool, which in turn, leads to overheating. The system will now warn the driver well in advance if there is a risk of overheating due to insufficient coolant in the system.

Source: Ford Online

QUESTION:







If all the possible suppliers of coolant tanks with sensors for Ford are in China.
1.Advise the Ford executive on all warehousing methods that can assist them to reduce transportation costs. Consider the sourcing strategy choice you advised and recommend the most ideal warehousing option that can help Ford reduce transportation costs.
2.Evaluate capacity strategies and identify the kind of capacity strategy you would expect Ford to adopt for the Ford Kuga 1.6? Why?