Does anyone know if the following will apply to resent Ford news?
' What they're
(Microforum) doing is, they have got everything that Amazon has in place, but they put other
people and names in on top of it. So, you know Sony might be one, Ford might be another. What
they're doing is saying, "You guys drop your name on top of ours. We'll do the e-commerce stuff.
We'll do the fulfillment, shipping, the marketing, call centers and we'll make it look like it's you, ok?
But you pay us to do it, and then you give us a royalty." '
newsalert.com
FOCUS - Ford enters vehicle recycling business
(Recasts, adds background, company and analyst comments throughout, byline)
By Ben Klayman
DEARBORN, Mich., April 26 (Reuters) - Ford Motor Co. , the world's second largest automaker, said on Monday it has entered the automotive
recycling business in a move that could ultimately lead to faster repairs for damaged cars.
The automaker has purchased a vehicle recycling operation in Tampa, Fla. -- Copher Brothers Auto Parts -- for an undisclosed amount and plans to
expand its presence substantially in coming months, said William Li, chief operating officer of an as-yet unnamed unit created by Ford to operate the
recycling business.
The U.S. recycling industry is ripe for consolidation, with about 10,000 mostly mom-and-pop firms, said Martin Saffer, the subsidiary's acting chief
executive officer. Ford expects to purchase dozens more recycling firms in the coming months and may even start its own operations in some markets.
Ford's goal is to make itself more consumer friendly, make a lot of money and follow through on its promise to be an environmental leader, the Ford
executives told reporters.
Ford's ultimate goal is to expand through North America as well as into Europe, Asia and Latin America, Li said. It believes the subsidiary's annual
sales could exceed $1 billion within the next few years.
"We're here to revolutionize an industry, create a Fortune 1000 company from scratch and become a global environmentally focused powerhouse," Li
said. "Our vision is to become the world's leading auto recycler."
Ford will purchase old and damaged vehicles and parts from insurance firms and auctions, and eventually its own plants. It will recycle and resell such
parts as vehicle front- and back-ends, transmissions, and doors to auto body repair shops and insurers, as well as directly to some consumers, he said.
Ford said it does not yet have any commitments from insurers.
Officials declined to say what profit margins the automaker expects from the venture. Li said Ford officials will assess in four or five years whether to
spin off the subsidiary or more completely integrate it into Ford's operations.
By improving the efficiency and quality of recyclers, Ford will be able to deliver parts faster so that damaged cars and trucks can be repaired faster, he
said. Consumer costs may not necessarily fall, however.
In the United States, about 11 million vehicles are "retired" annually, Li said. About 75-80 percent of each vehicle is recycled now, with the rest ending
up in landfills. Ford hopes to recycle more, raising the percentage reused to at least 90 percent within five years.
The European Union has directed automakers to make vehicles 95 percent recyclable by 2005, but no countries have adopted that standard yet.
ING Baring Furman Selz analyst Maryann Keller likes the idea of the operation, and with vehicle recycling mandatory in Europe, she said it makes
sense to get involved in the United States.
"I'm not sure how much money it's going to make in the short term, but it does fit," she said. "The cost of entry is very small for a company like
Ford."
Li said the subsidiary currently employs more than 50 people between Michigan and Florida and expects that number to grow to several thousand in
the next few years. |
