Ford cuts suppliers

In a recent news article by the Plain Dealer, it states that the Ford motor company has decided to use fewer suppliers in an attempt to be a more successful company in the future. Ford will give money up front for engineering and development, and will make the contracts longer, which allows suppliers not to worry as much that Ford will switch suppliers. Ford will probably cut their suppliers for their most expensive parts by at least 100 next year. The strategy could be bad for companies that are not large enough or do not have the latest technology. If I were to draw a supply and demand curve for this situation you would clearly be able to see that Ford is attempting to shift the supply curve to the right. This shift would make their product cheaper and the quantity demanded increase.

Do you believe that Ford is making the right decision?