A new supply contract with Ford Motor Company will represent a 2.5 increase in value-added revenues compared to last year's sales, says a spokesperson for Tenneco. Inc. The company recently announced that it won a business contract with Ford to supply the automaker with catalytic converters and other "hot-end" emission control componenents for vehicle models scheduled to debut in 2009 and 2010.
"We are extremely pleased to be selected by Ford for this significant new emissions control business," says Gregg Sherrill, Tenneco's chairman and CEO. "We continue to generate growth by investing in technology and enhancing our engineering capabilities to provide just what our customers need to meet current and future emissions requirements."
Tenneco will supply the components for the Ford F-150 light-duty truck, Ford Expedition, Lincoln Navigator and the Ford Econoline vehicles. Tenneco currently supplies the "cold end" (mufflers and tailpipes) of the exhaust system for the Ford F-150, Ford Expedition and Lincoln Navigator, now making it a full-system supplier for those platforms. Tenneco was also awarded additional emission control content on the gasoline version of the F250/F350 Super-Duty in addition to what it already supplies on both the gasoline and diesel versions of the vehicles that launched in 2006.
For 2010 model-year, Tenneco will supply emission control components for some of Ford's mid and upper mid-size passenger vehicle lines. This represents growth in the car segment with Ford Motor Company and supports Tenneco's global strategy to increase passenger car business.
Tenneco referenced this new business in its third quarter 2007 earnings release last October, but was unable to name the customer at that time. Tenneco is a strategic supplier to Ford as a member of the company's Aligned Business Framework supplier group.
For more information about Tenneco, visit the company's Web site.
