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Motorcraft part made in China?????

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Old 02-16-2017, 06:52 AM   #11
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Originally Posted by Summers22 View Post
Factory part only means "factory installed". I bet half of every truck has parts that were not made in the good ole USA. If you think every part on your F150 was made in North or South America, I feel bad for you.

OEM is "original equipment manufacturer", that could mean manufactured in China for instance.
So correct here. I notice that the commercials that I used to see about a vehicle that was "Made in America" have gone by the wayside, because more than 50% of its parts are made in some other country. As Summers22 points out, it may be assembled in the U.S.A., but its parts are made all over the world.

While I spent time in Germany, I found that automotive parts were made all over German cities. This helped their economy and job market across their country. Then these parts were sent to a local city where the car was assembled. This way each city had decent jobs and job pay to help their local economy, and the entire country benefited from that.
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Old 02-17-2017, 02:26 PM   #12
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I've been in the automotive supply chain for nearly 35 years now. When I started, the car makers did all the design work and testing and purchased all of the tooling to produce the components that went into their vehicles.

When the Japanese car makers started eating their collective lunches, they studied how the Japanese developed their products and discovered they were very much "cross integrated" and included their suppliers in the process. It makes a lot of sense to get the guy (in my case) that makes molded plastic parts around the clock and has the expertise to help design and develop them. That supplier can get the design features they need to manufacture efficiently which results in higher quality and lower pricing.

In the late 80's the U.S. car makers started turning over design and development responsibility to the suppliers and in return started giving them entire systems to supply. For example, the whole door panel assembly rather than one supplier shipping the core, another shipping the window system, another the handles, etc. This was also a way for the carmakers to reduce their overhead costs.

The next step was to mandate that the suppliers pay for all the tooling and assume warranty costs if one of their "systems" should have problems. So many suppliers had so much to lose that they agreed to assume these costs. The car makers also started to demand price reductions and "life of program" pricing. This means that every year the suppliers would have to reduce their prices and when the product went into "service" status, the supplier still had to sell at the last negotiated price.

This means that if I was making 5,000 pulleys a week in 1990 and sold them for $1.50, in 2017 I have to sell the 500 pulleys a year at $1.50 also. It's a lot more expensive to set up a molding machine for only 500 pieces a year as opposed to setting it up and running 250,000 pieces a year. Can't afford to do it, so I'd just as soon give up the business. I'd tell Ford that I'll go out of business so I won't do it - they'll have to find someone else to make those pulleys.

BUT - I own the tooling. So Ford would be stuck buying another mold for, say $85,000.00 to make 500 pulleys a year. That's $170.00 per pulley JUST to recover the cost of the tooling. Here's an option. Hire an outside source that will have the mold built in China for $15,000.00 or have the Chinese firm pay for the tooling, sell the "OEM" product for the same price and keep the savings.

Oh, and the Chinese supplier will sell them on the black market anyway.

Same design, same specifications, not the same quality.

The plastic pulley in your case was originally part of the belt system made by Gates Powertrain in Canada. (I did computerized mold filling analysis on it and my employer at the time molded it.) If I'm not mistaken, they've been out of business in North America for quite some time now. Not a surprise at all that such a "vintage" of part ended up in China.
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Old 02-18-2017, 02:13 PM   #13
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Heck, on the rear of my stock OEM wheels, it states "Made in China"
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