UPS Extends Logistics Contract with Ford

UPS will continue to deliver new cars to dealers under an extension of its logistics contract with Ford Motor Company.

“While the nation’s automotive industry is currently undergoing a dramatic upheaval, UPS’s finished vehicle logistics model effectively reduces costs for manufacturers such as Ford,” said Paul Hargadon, general manager of UPS’s Automotive Industry Solutions Group. “UPS has been working with Ford since 2000 and has provided improved transit times while lowering logistics costs.”

The move comes as U.S. automakers and analysts are predicting an upturn in sales in June. J.D. Power and Associates and Edmunds.com released forecasts that annualized June sales in the United States will top 10 million cars and trucks for the first time this year.

“The worst is behind us,” Ford Motor Company analyst George Pipas told the Wall Street Journal on Tuesday. “Even if sales fail to hit the 10 million milestone, we’re still not slipping back.”

Under the terms of the contract, UPS will continue to assist in the management of Ford Motor Company’s North American outbound finished vehicle distribution network by shipping finished Ford vehicles to dealerships in the United States, Canada and Mexico.

UPS provides on-site operations management at key Ford distribution points; as well as carrier management; transportation network oversight, and contingency support.

Contact Alan Field at afield@joc.com.