Wednesday February 17 7:06 PM ET
Ford Standardizes On Dell Personal Computers
ROUND ROCK, Texas (Reuters) - Dell Computer Corp. (Nasdaq:DELL - news) Wednesday formally announced that U.S. automaker Ford Motor Co. (NYSE:F - news) will standardize its personal computer purchasing on Dell products, expanding their existing supply relationship.
The announcement confirmed what Dell officials, including Chairman and CEO Michael Dell, have told investors over the past week, first at a Goldman, Sachs investor conference in New York last week and on its quarterly conference call late Tuesday.
In a statement, Dell said Ford would buy Intel-based desktop, notebook and server computer systems worldwide from Dell. Ford said the deal would significantly cut information technology costs. Dell products will be deployed throughout Ford operations internationally, including its Jaguar, Ford, Lincoln, Mercury and Mazda brands, it said.
A Dell spokesman declined to disclose the value of the new deal or the amount of Ford's prior purchases. Dell often has cited Ford as a key corporate customer, using the automaker as an example of how its Web-based ordering systems helps cut purchasing costs.
''Our direct business model helps Ford decrease costs through lower prices, direct shipping from the factory, on-time delivery and reduced cost of installation,'' said Joe Marengi, general manager of Dell's large corporate account business.
Dell also said it recently signed a series of multi-year, multi-million-dollar PC sales deals with large enterprises, including Mobil Corp. (NYSE:MOB - news), Sara LeeCorp., and FTD.
The announcement occurred as Dell stock was taking a pounding in midmorning trade on Nasdaq after the company reported that year-to-year revenue growth slowed from its previously torrid rate of growth. Dell stock finished trading down $7.19 at $81.56 after falling as low as $77.375 earlier in the day.
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