Damaged and blemished aluminum wheels on their way to be recycled

 

 

Vehicles ready for disassembly

 

 

Fluids to be recycled

 

• Significant environmental benefit seen through large reduction of auto parts at landfills
• Second similar move in a month toward transformation to a consumer company; will build closer customer relationships downstream in the business
• Offers growth opportunity in a healthy business; potential revenues of $1 billion or more

DEARBORN, Mich., April 26, 1999 - Ford Motor Company has entered the automotive recycling business with the expectation of developing a significant environmental enterprise for the company.

Ford Motor Company has purchased a vehicle recycling operation in Florida and plans to expand its presence substantially in the coming months.

The first facility, located in Tampa, will continue to disassemble cars and trucks for parts and, in the future, additionally will serve to gather parts from Ford plants for recycling. These parts will be made available for resale principally to body shops, insurance companies and to retail customers.

This acquisition marks another important step toward Ford Motor Company's goal to become the world's leading consumer company providing automotive products and services. By entering this industry sector Ford Motor Company will be able to interact with customers and service their needs even more directly.

"We are intent on transforming ourselves to a total consumer focus," said Jacques Nasser, Ford Motor Company president and chief executive officer. "This new venture not only helps that effort, but is directly aligned with our corporate objective of environmental leadership. We also see this as potentially a billion dollar or more business for Ford Motor Company. "

Ford Motor Company is entering the vehicle recycling business for three main reasons. It will, first of all, help reduce the amount of auto parts going to landfills. Second, vehicle recycling is growing and represents a healthy business proposition within the automotive value chain. And third, it will allow Ford Motor Company to be closer to its customers in that part of the business after the sale.

"To keep materials out of landfills and to make parts more readily available makes sense for the environment, for our customers and for Ford Motor Company," said Martin Saffer, acting chief executive officer of the new company. "We have a lot to offer a business like this and believe we can have very positive impact."

Ford Motor Company will be able to offer high-quality parts with a quick turnaround to benefit all customers. "We will apply our quality customer-care standards to the business and will be able to provide reliable and timely shipping of parts throughout the nation as our presence increases," said Saffer.

Earlier this month, Ford Motor Company purchased Kwik-Fit, Europe's largest independent fast-fit repair chain. Kwik-Fit will promote closer customer relations and further solidify Ford Motor Company's role in the repair and parts business.